NCLT orders liquidation of Souvenir Developers after no resolution plan

The National Company Law Tribunal's Mumbai bench on 3 November 2026 ordered the liquidation of Souvenir Developers (India) Private Limited, after no resolution plan was received during its insolvency process. Its only creditor, Samata Nagari Sahakari Patsanstha Maryadit, a co-operative credit society, had an admitted claim of Rs 1,22,48,573 (about Rs 1.22 crore).

What Happened

The tribunal had admitted the company into the corporate insolvency resolution process (CIRP), a time-bound process to rescue or sell a company that has defaulted, on 1 August 2023, on the society's petition. The 180-day period ended on 29 January 2024 with no extension sought and no resolution plan received, per the order.

The order records that the resolution professional found three plots of the company in Jalgaon district had been sold by its suspended directors in September and October 2023, after the process began. The sale deeds showed Rs 7,15,000, while the directors said the property was sold for Rs 34,00,000, which the order says indicates the assets may have been sold at an undervalued price. The society returned Rs 7,15,000 to the company's account on 12 January 2024.

The committee of creditors told the resolution professional it wanted liquidation but passed no formal resolution. The tribunal held that Section 33(1) of the Insolvency and Bankruptcy Code applied because no plan had been received, and ordered liquidation. Under the 2026 amendment to the Code, it appointed a liquidator from the panel shared by the Insolvency and Bankruptcy Board of India (IBBI).

What It Means

Liquidation means the company's assets will be sold and the money shared among creditors in the order the Code sets. A liquidation order is not a finding of fraud or mismanagement. The tribunal directed the liquidator to take control of all assets and to continue or start proceedings over avoidance transactions or fraudulent or wrongful trading, if any. A fresh moratorium on legal action against the company begins, and the order works as a notice of discharge to its officers, employees and workmen. The liquidator must issue a public announcement and file a preliminary report within 30 days. The order may be appealed to the National Company Law Appellate Tribunal.

Source: NCLT order