Vibha Agro Tech Limited Ordered into Liquidation

Corporate Insolvency Resolution Process (CIRP) was initiated against Vibha Agro Tech Limited on 05 June 2023 based on Section 7 application by State Bank of India
The CIRP had to be restarted on 21 February 2025 due to non-compliance with Regulation 6 of IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016
Multiple resolution plans were submitted but rejected by Committee of Creditors:
M/s Vasavi Realty Private Limited plan was approved by CoC but challenged by suspended directors
Rare Asset Reconstruction Limited plan rejected
Mr. Vidyasagar Parchuri's plan rejected due to ineligibility under Section 29A (wilful defaulter status)
M/s Verity Knowledge Solutions Private Limited plan failed to secure requisite 66% voting threshold
The suspended director Mr. Vidyasagar Parchuri was declared wilful defaulter by SBI, IDBI and PNB, making him ineligible under Section 29A(b)
The CIRP period extended to 714 days, far beyond the statutory maximum of 330 days prescribed under Section 12 of IBC

The Tribunal found that no resolution plan could be approved with the requisite 66% voting share as required under Section 30(4) of IBC
The Committee of Creditors in its 16th meeting held on 06 January 2026 resolved to initiate liquidation process with proper authorization to the Resolution Professional
The CoC in its 19th meeting held on 14 May 2026 with 97.31% voting share resolved not to restore or continue CIRP and proceed with liquidation
The Tribunal upheld the commercial wisdom of CoC, citing Supreme Court precedent in K. Shashidhar v. Indian Overseas Bank that NCLT cannot sit in appeal over CoC's commercial decisions
The MSME status of Corporate Debtor does not override Section 29A ineligibility for wilful defaulters
Regulation 39BA requirement was complied with as CoC deliberated on compromise possibilities but resolved not to recommend any arrangement due to ineligibility of directors

Liquidation Order: Corporate Debtor Vibha Agro Tech Limited ordered into liquidation under Section 33(1) of IBC
Liquidator Appointment: Shri Dantu Indu Sekhar appointed as Liquidator, directed to file consent in Form AA within 2 days
Moratorium Ceases: Moratorium declared under Section 14 of IBC ceased to have effect
Director Powers: All powers of Board of Directors vested in Liquidator
Public Announcement: Liquidator directed to issue public announcement under Regulation 12 of IBBI (Liquidation Process) Regulations, 2016
Liquidator Fees: Entitled to fees as specified by IBBI under Section 34(8) of Code

Liquidator to exercise powers under Sections 35 to 50 and 52 to 54 of IBC read with Liquidation Process Regulations
Personnel of Corporate Debtor mandated to extend all assistance and cooperation to Liquidator
Order serves as notice of discharge to officers, employees and workmen of Corporate Debtor
Regional Director, Ministry of Corporate Affairs, Registrar of Companies & Official Liquidator, Hyderabad to be served copies
Registered Office of Corporate Debtor and Liquidator to be served copies of order