Authority: National Company Law Tribunal (NCLT), Division Bench–I, Chennai

Order Date: 13 July 2026

Case Overview

The National Company Law Tribunal (NCLT) Chennai heard multiple applications related to the Corporate Insolvency Resolution Process (CIRP) of Srinithi Enterprises Private Limited. The CIRP was initiated on 04 April 2025. The applications included IA(IBC)/2080(CHE)/2025 regarding creditor payments, and IA(IBC)/979/(CHE)2026 (for condonation of 7-day delay) and IA(IBC)/982/(CHE)2026 (seeking 90-day CIRP extension beyond 420 days).

HDFC Bank Ltd, the major financial creditor holding 80.17% voting share, had failed to make required payments despite multiple opportunities. During the hearing, HDFC Bank officers provided a written undertaking to make payment within two days, failing which their salaries would be attached.

The Resolution Professional (RP) reported significant challenges during the CIRP. The corporate debtor was in the trading business with only land and building as assets. The erstwhile directors were non-cooperative and not functioning from the registered office in Virugambakkam, Chennai, but from a corporate office in Odanchatram, Dindigul. The RP lodged a police complaint regarding a vehicle given to legal counsel Mr. Bharath and suspected fraudulent activities and siphoning of funds by the directors.

The Committee of Creditors (CoC) with 80% voting had resolved to seek extension as there was possibility of resolution. The total admitted claims amounted to ₹75,74,24,089/- with the following creditor distribution:

  • HDFC Bank Limited: ₹60,72,27,334/- (80.17% voting)
  • OXYO Financial Services Private Limited: ₹8,96,79,672/- (11.84% voting)
  • Samunnati Finance Private Limited: ₹5,35,96,045/- (7.08% voting)
  • AXIS Bank Limited: ₹52,52,368/- (0.69% voting)
  • Bank of Baroda: ₹16,68,511/- (0.22% voting)

The CIRP had already been extended multiple times: initially 90 days from 01 October 2025 to 31 December 2025, then 60 days from 01 January 2026 to 01 March 2026, and further extended to 30 May 2026. The RP issued Form G on 29 April 2026 with a submission deadline of 28 May 2026. While 15 Prospective Resolution Applicants expressed interest, only 2 intended to submit plans, and ultimately no resolution plan was received. During the process, Promoter Director Mr. Anguraj Ramalingam expired.

Final Outcome

The NCLT declined the request for further extension of CIRP period and ordered liquidation of Srinithi Enterprises Private Limited. The tribunal noted that even within the extended period, no resolution plan emerged and there was no possibility of revival given the corporate debtor's circumstances.

Mr. Ramakrishnan Sadasivan (IBBI Registration No. IBBI/IPA-001/IP-P00108/2017-2018/10215) was appointed as Liquidator with an initial fee and expenses of ₹3,00,000 (excluding GST and applicable taxes). The Liquidator is required to:

  • Strictly follow IBC 2016 and attendant Rules and Regulations
  • Issue public announcement of liquidation
  • Investigate financial affairs for preferential/undervalued/fraudulent transactions
  • Submit preliminary report within 75 days from liquidation commencement date

The moratorium under Section 14 of IBC ceased effect, and a fresh moratorium under Section 33(5) commenced. The registry was directed to communicate the order to the Registrar of Companies and IBBI.

Topics: Corporate Insolvency, Liquidation Order, Creditor Rights