Authority: National Company Law Tribunal (NCLT), Jaipur Bench

Order Date: 12.10.2026

Case Overview

The National Company Law Tribunal (NCLT), Jaipur Bench, presided over by Judicial Member Ms. Reeta Kohli and Technical Member Ms. Kavita Bhatnagar, heard an application (IA (IBC)(Liq.) No. 4/JPR/2024) filed by Mr. Vikas Rajvanshi, the Resolution Professional (RP) of Sundha Road Developers Private Limited (Corporate Debtor). The application was filed under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking an order for the liquidation of the Corporate Debtor. This request was based on a decision made by the sole member of the Committee of Creditors (CoC), Khush Infratech Private Limited, which held a 100% voting share, during its 5th meeting held on 10.08.2024.

The Corporate Insolvency Resolution Process (CIRP) against Sundha Road Developers was initiated by an NCLT order dated 31.01.2024, which admitted a petition filed by the company itself under Section 10 of the IBC. Mr. Vikas Rajvanshi was appointed as the Interim Resolution Professional (IRP). During the CIRP, a public announcement was made, and claims were invited. The CoC was constituted with Khush Infratech Private Limited as the sole financial creditor, having an admitted claim of approximately ₹24.54 crore. An invitation for Expression of Interest (EOI) was published, but no prospective resolution applicants submitted any plans. The CoC cited the company's non-operational status, lack of resolution plans, and insufficient funds for continuing the CIRP as reasons for its decision to liquidate.

A key feature of the case was the significant discrepancy in the company's valuation. The book value of assets as of 31.01.2024 was approximately ₹25.13 crore, largely comprised of non-current loans and advances of ₹25.06 crore. However, the aggregate fair value and liquidation value were assessed by valuers to be only approximately ₹4.19 lakh, as the valuers treated the loans and advances as doubtful or unrecoverable. The RP undertook recovery efforts, corresponding with debtors like Mr. Mufat Singh Rao (₹13.01 crore), Lokendra Pal Singh (₹2.38 crore), and Shaitan Singh Rao. These parties disputed the liabilities, raising issues of reconciliation, adjustment/set-off, and limitation.

Pursuant to an NCLT order dated 01.07.2025, a Transaction-cum-Forensic Audit was conducted. The audit report, submitted on 10.11.2025, noted a substantial reduction in the company's reserves in FY 2022-23 and identified transactions that warranted examination under Sections 43, 45, 49, and 66 of the IBC concerning preferential, undervalued, and fraudulent transactions.

Final Outcome

The NCLT allowed the application and passed an order for the liquidation of Sundha Road Developers Private Limited. The tribunal found that the CoC's decision, taken with a 100% voting share, satisfied the statutory requirements of Section 33(2) of the IBC. Mr. Pankaj Bhattad (Registration No. IBBI/IPA-001/IP-P-02841/2023-2024/14362) was appointed as the Liquidator, as proposed by the CoC. The Liquidator is mandated to conduct the process in accordance with the IBC and the IBBI (Liquidation Process) Regulations, 2016. The moratorium under Section 14 of the IBC ceased upon the passing of this order.

The Liquidator is specifically directed to examine the substantial loans, advances, and receivables reflected in the company's books, the underlying documents, and the Transaction-cum-Forensic Audit Report. He is to take appropriate steps for recovery or other actions as permissible by law, including potential actions concerning avoidable transactions. The order clarifies that it does not constitute a final adjudication on any transactions or liabilities, leaving those matters open for the Liquidator to examine and pursue in accordance with the law.

Topics: Insolvency, Liquidation, NCLT