Authority: National Company Law Tribunal, Jaipur Bench (Coram: Ms. Reeta Kohli, Hon'ble Judicial Member and Ms. Kavita Bhatnagar, Hon'ble Technical Member)

Order Date: 17.06.2026

Case Overview

This order pertains to an Interlocutory Application (IA (IBC)(Liq.) No. 02/JPR/2026) filed by Mr. Ajay Kumar Atolia, the Resolution Professional (RP) of M/s Viratra Export Pvt. Ltd. (Corporate Debtor), under Section 33 of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of NCLT Rules, 2016. The application sought initiation of the liquidation process against the Corporate Debtor and the appointment of the applicant as Liquidator.

The corporate insolvency resolution process (CIRP) was initiated against Viratra Export Pvt. Ltd. in CP (IB) No. 63/9/JPR/2020. Mr. Sachin Naveen Sinha was initially appointed as Interim Resolution Professional (IRP). Vide order dated 26.09.2025, the Tribunal replaced him and appointed Mr. Ajay Kumar Atolia as IRP with directions to proceed with the CIRP afresh. A public announcement in Form-A was issued on 10.10.2025 in the Indian Express (English, Jaipur edition) and Star Savera (Hindi, Jodhpur edition) inviting claims. Only one claim was received, from the State Bank of India (SBI), which consequently became the sole Financial Creditor and constituted the Committee of Creditors (CoC) with a 100% voting share. The first CoC meeting was held on 07.11.2025.

The RP reported complete non-cooperation from the suspended management despite repeated communications on 08.10.2025, 16.10.2025, 23.10.2025, 26.10.2025, and 31.10.2025, seeking handover of records and assets. This necessitated the filing of an application under Section 19(2) of the Code, which was disposed of on 24.04.2026 with directions for the management to provide documents within two weeks.

Examination of available bank statements and financial records revealed no substantial transactions since 2021, with accounts remaining largely dormant. A physical inspection of the registered office in Jodhpur confirmed the absence of any movable or immovable assets. In its second meeting on 05.12.2025, the CoC observed that the Corporate Debtor possessed no assets available for acquisition, making the publication of Form-G for Expressions of Interest unfeasible. In its third meeting on 12.01.2026, the CoC, with its 100% voting share, resolved to liquidate the Corporate Debtor under Section 33(2) of the Code and to appoint the current RP as Liquidator. The CoC also opined that a transaction audit under Sections 43 to 51 and Section 66 was not required to avoid unnecessary CIRP costs.

The Tribunal noted procedural irregularities, such as the filing of a largely blank Form-H, which is typically for resolution plans. However, it treated this as a minor issue given that no resolution process was undertaken. The Tribunal also noted that Fair Value and Liquidation Value were not ascertained due to the unavailability of records, a deviation from Regulation 35, which was deemed acceptable under the peculiar circumstances of this case.

The Tribunal found that the commercial wisdom of the CoC, exercised with a 100% vote, was not vitiated by procedural illegality, arbitrariness, or mala fide. The decision for liquidation was based on the absence of assets, absence of investor interest, non-cooperation from management, and lack of meaningful business activity.

Final Outcome

The application was allowed. M/s Viratra Export Pvt. Ltd. is ordered to be liquidated under Section 33 of the Code. Shri Ajay Kumar Atolia (IBBI/IPA-001/IP-P-01988/2020-Ajay Kumar Atolia, 2021/13127) is appointed as the Liquidator. The Liquidator is directed to issue a public announcement stating the Corporate Debtor is in liquidation. In terms of Section 33(5), subject to Section 52, no suit or legal proceedings can be instituted against the Corporate Debtor without prior approval of the Tribunal. The moratorium declared under Section 14 of the Code ceases effect from the date of this order. The Registry is directed to communicate this order to the Registrar of Companies and concerned authorities.

Topics: Insolvency, Liquidation, NCLT