Case Details

Case Name: State Bank of India vs. M/s Vibha Agro Tech Limited

Authority: National Company Law Tribunal (NCLT), Hyderabad Bench-1

Case Number: CP(IB) No. 645/7/HDB/2018

Order Date: 22 May 2026

Application Number: IA (Liq) No. 01/2026

Period of CIRP: The Corporate Insolvency Resolution Process (CIRP) was commenced on 05.06.2023 and, with extensions, lasted for a maximum period of 330 days, expiring on 11.02.2026.

Parties Involved

Financial Creditor/Petitioner: State Bank of India (SAM Branch)

Corporate Debtor/Respondent: M/s Vibha Agro Tech Limited

Resolution Professional (Applicant): Shri Madasa Kumar (appointed on 22.12.2023, replacing Mr. Ram Ratan Kanoongo)

Appointed Liquidator: Shri Dantu Indu Sekhar (IBBI Registration No. IBBI/IPA-003/IPA-ICAI-N-00233/2019-2020/12773)

Suspended Director of Corporate Debtor: Mr. Paruchuri Vidyasagar

Other Entities Involved: All-Indian Kisan Sabha (challenged CIRP), M/s Vasavi Realty Private Limited (submitted initial resolution plan), Rare Asset Reconstruction Limited (submitted resolution plan), M/s Verity Knowledge Solutions Private Limited (submitted resolution plan)

Tribunal Members: Shri Rajeev Bhardwaj, Hon'ble Member (Judicial) and Shri Sanjay Puri, Hon'ble Member (Technical)

Issues / Allegations / Violations

  • The core issue was the failure of the Corporate Insolvency Resolution Process (CIRP) for Vibha Agro Tech Limited.
  • The CIRP was initiated based on an application u/s 7 of the IBC, 2016, filed by State Bank of India, and admitted on 05.06.2023.
  • The process was challenged by the Suspended Directors and the All-Indian Kisan Sabha via IAs No. 1402, 1403, 1404 of 2024 and 1428 and 1429/2024, leading the NCLT to order a fresh Public Announcement (Form-A) and a restart of the CIRP with a new 180-day timeline on 21.02.2025.
  • A key allegation impacting the resolution was the status of suspended director Mr. Paruchuri Vidyasagar as a classified wilful defaulter, making him ineligible to submit a resolution plan under Section 29A of the IBC.

Findings & Observations

  • The Tribunal observed that a fresh Public Announcement (Form-A) was duly issued on 27.02.2025 in compliance with its order, with a claim submission deadline of 07.03.2025.
  • The Committee of Creditors (CoC) was constituted on 22.03.2025, and an invitation for Expression of Interest (Form G) was published on 29.04.2025.
  • The Tribunal noted that 13 Expressions of Interest were received, but only two resolution plans were submitted for consideration: one from Rare Asset Reconstruction Limited and one from Mr. Paruchuri Vidyasagar.
  • Both plans were rejected by the CoC in its 9th meeting held on 14.08.2025 for non-compliance with the IBC and RFRP conditions, with Mr. Vidyasagar's plan specifically rejected due to his ineligibility under Section 29A.
  • A subsequent resolution plan from M/s Verity Knowledge Solution Private Limited also failed to secure the mandatory 66% voting share from the CoC.
  • The Tribunal found that the writ petitions filed by Mr. Vidyasagar challenging his wilful defaulter classification were dismissed by the Hon'ble High Court, confirming his ineligibility.
  • The maximum CIRP period of 330 days had expired, and the 16th CoC meeting held on 06.01.2026 passed a resolution to initiate liquidation.

Penalties / Settlements / Directions

  • The primary directive is the order for liquidation of the Corporate Debtor, Vibha Agro Tech Limited, under Section 33(1) of the IBC, 2016, effective from the date of the order (22.05.2026).
  • Shri Dantu Indu Sekhar is appointed as the Liquidator. He is directed to file his consent in Form AA within 2 days of receiving the order.
  • The Liquidator is directed to issue a public announcement stating the corporate debtor is in liquidation, as per Regulation 12 of the IBBI (Liquidation Process) Regulations, 2016.
  • The moratorium declared under Section 14 of the IBC ceases to have effect.
  • All powers of the Board of Directors, Key Managerial Personnel, and partners of the Corporate Debtor cease and are vested in the Liquidator.
  • The Liquidator is to exercise powers and perform duties under Sections 35 to 50 and 52 to 54 of the IBC, read with the IBBI (Liquidation Process) Regulations, 2016.
  • The personnel of the corporate debtor are ordered to extend all assistance and cooperation to the Liquidator.
  • The Liquidator is entitled to fees as specified by the IBBI under Section 34(8) of the Code.
  • This order serves as a notice of discharge to the officers, employees, and workmen of the corporate debtor, unless the business is continued by the Liquidator.

Corrective Actions & Future Obligations

  • The Liquidator must comply with all statutory requirements for the liquidation process as outlined in Chapter-III of the IBC and the relevant IBBI Regulations.
  • The Resolution Professional (Shri Madasa Kumar) is directed to serve a copy of this order on the newly appointed Liquidator, the Regional Director of the Ministry of Corporate Affairs, the Registrar of Companies, the Official Liquidator in Hyderabad, and the registered office of the Corporate Debtor.

Final Ruling & Enforcement

  • The application (IA (Liq) No. 01/2026) is allowed.
  • The corporate debtor, M/s Vibha Agro Tech Limited, is ordered into liquidation.
  • The appointed Liquidator is empowered to take immediate control and begin the process of liquidating the company's assets in accordance with the law.
  • The order is final and enforceable immediately, marking the formal end of the CIRP and the commencement of the liquidation phase.