NCLT Mumbai orders liquidation of Pune firm Shitole Tissue Culture after no bid

The Mumbai bench of the National Company Law Tribunal (NCLT) has ordered Shitole Tissue Culture Private Limited, a Pune-registered company, to be liquidated. The order, delivered on 22 October 2026, came after the company's insolvency process failed to attract any resolution plan. Its only financial creditor, Janaseva Sahakari Bank Limited, had a claim of Rs 8,41,52,298.80 admitted.

What Happened

According to the order, the tribunal admitted the company into the corporate insolvency resolution process on 20 January 2025 on a petition filed by Janaseva Sahakari Bank under Section 7 of the Insolvency and Bankruptcy Code. The resolution professional invited bids twice, in June and July 2025, but received no expression of interest, the order records.

The resolution professional told the tribunal that the company owns no immovable property, that its assets had been taken into possession by the bank under the SARFAESI Act, and that two registered valuers put the liquidation value of its plant and machinery at about Rs 2.1 lakh to Rs 2.2 lakh. At a meeting on 31 October 2025, the committee of creditors, made up only of the bank, voted 100% to liquidate the company.

The tribunal held that this vote met the minimum of 66% required under Section 33(2) of the Code and that the creditors' commercial decision was not open to judicial interference. Because the amended Section 34 bars a resolution professional from becoming liquidator of the same company, it appointed a different insolvency professional as liquidator, at a fee of Rs 1 lakh a month for 12 months, subject to the IBBI's recommendation.

What It Means

Liquidation means the company's assets will be sold and the money shared among creditors in the order the law sets. It is not a finding of fraud or mismanagement. The liquidator will take control of the assets, issue a public announcement that the company is in liquidation, and file a preliminary report within 30 days. A fresh moratorium begins, and the order works as a notice of discharge to the company's officers, employees and workmen.

Creditors, employees and workmen should watch for the liquidator's public announcement, which sets out how claims are to be filed. The NCLT's order may be appealed to the National Company Law Appellate Tribunal (NCLAT).

Source: NCLT order