Authority: National Company Law Tribunal, New Delhi Bench, Court-III
Order Date: 09.06.2026
Case Overview
This application was filed by Mr. Mohan Lal Jain, the Liquidator of Vidharva Trading Private Limited, under Section 54 of the Insolvency and Bankruptcy Code, 2016 read with Regulation 45 of IBBI (Liquidation Process) Regulations, 2016, seeking dissolution of the Corporate Debtor.
The Corporate Debtor, Vidharva Trading Private Limited, was admitted into Corporate Insolvency Resolution Process (CIRP) on 23.12.2022 pursuant to a Section 9 application filed by Operational Creditor Montage Enterprises Private Limited. Mr. Mohan Lal Jain was appointed as Interim Resolution Professional and later confirmed as Resolution Professional. On 30.05.2023, the Adjudicating Authority allowed an application under Section 33(2) of IBC and ordered liquidation of the Corporate Debtor, appointing Mr. Jain as Liquidator.
During the liquidation process, a public announcement was made on 03.06.2023 calling for claims with a deadline of 29.06.2023. The liquidator admitted claims totaling ₹139,29,94,828.40 from two operational creditors: Montage Enterprises Private Limited (₹27,48,57,705.40, 19.73% voting rights) and Montage Global Private Limited (₹1,11,81,37,123.00, 80.27% voting rights).
The liquidator constituted a Stakeholders' Consultation Committee (SCC) with the two creditors and conducted six meetings between 07.06.2023 and 02.05.2024. Assets were sold through e-auction to Ripping Financial Services Limited for ₹7,15,12,000.00, exceeding the reserve price of ₹6,99,47,000.00. The successful bidder deposited the balance sale consideration on 24.01.2024, and the assignment deed was executed on 02.03.2024.
The Tribunal had raised specific queries in its order dated 07.11.2025 regarding: (i) GST Show Cause Notice of ₹1,00,67,235.00 plus penalty dated 14.10.2024; (ii) reconciliation of claims variance; (iii) asset memorandum and recovery actions for trade receivables; (iv) preferential, undervalued, fraudulent and extortionate transactions; and (v) valuation disclosure.
The liquidator responded that the GST claim was time-barred as it was submitted after the claims deadline of 29.06.2023 and did not exist as on liquidation commencement date (30.05.2023). The liquidator cited NCLAT precedent that tax authorities cannot initiate fresh adjudication proceedings during liquidation moratorium.
Regarding claims reconciliation, the liquidator clarified that a typographical error occurred in the dissolution application, but the actual admitted claim amount of ₹27,48,57,705.00 was correct and verified.
For trade receivables, the liquidator explained that the reduction from ₹163.50 crore (31.03.2022) to ₹150.04 crore (23.12.2022) was due to regular business transactions and payments received from debtors, supported by bank statements. Post-23.12.2022, recovery of ₹5,85,128.00 was made from trade receivables.
The Transaction Record Analysis report dated 26.12.2023 found no preferential, undervalued, fraudulent or extortionate transactions during the review period (FY 2020-21, 2021-22, and up to 23.12.2022), hence no avoidance applications were filed.
Valuation reports were duly approved by the SCC and filed with the Tribunal, with no objections raised by stakeholders.
Final Outcome
The Tribunal ordered the dissolution of Vidharva Trading Private Limited under Section 54 of IBC, 2016. The liquidator was directed to serve the order upon the Registrar of Companies, NCT of Delhi and Haryana within 14 days and stands discharged from his responsibilities subject to procedural compliances.
The dissolution order does not discharge directors, shareholders, or other persons from any liability under applicable laws. Statutory authorities including Income Tax Department, GST Authorities, ESIC, PF, ROC, or other regulatory bodies remain at liberty to initiate or continue proceedings against concerned persons in accordance with law.
- Topics: Corporate Insolvency, Liquidation Process, Regulatory Compliance