Oriental Bank of Commerce Vs Vallabh Steel West Pvt. Ltd. (NCLT Delhi)
During the liquidation process, the Liquidator conducted seven rounds of e-auctions and subsequently sold the plant and machinery through private sale in the eighth round. All assets identified in the Asset Memorandum were sold, and the liquidation proceeds were distributed among stakeholders in accordance with Section 53 of the Code. Against the liquidation value of ₹8,69,98,933, the Liquidator realised ₹11,02,72,177. The Liquidator also submitted the requisite Preliminary Report, Asset Memorandum, quarterly progress reports, Final Report and Compliance Certificate in Form H under Regulation 45(3) of the Liquidation Process Regulations. The liquidation account, which had been opened with Punjab National Bank, was closed on 16 January 2023 following distribution of the realised proceeds.
The Tribunal also considered the pending recovery arising from preferential transactions. By order dated 11 June 2026 in IA-563/2022, the Adjudicating Authority had held certain payments made by the Corporate Debtor to M/s Vallabh Steels Limited (VSL) to be preferential transactions under Section 43 of the Code and directed repayment of ₹52,84,000 along with interest at 10% per annum under Section 44. The amount, including interest calculated up to 25 June 2026, stood at ₹99,91,827, with further interest accruing until actual payment. The Liquidator informed the Tribunal that the Stakeholders Consultation Committee had resolved that the recovered amount would be deposited directly into the designated Punjab National Bank account for onward distribution between Punjab National Bank and State Bank of India, in proportion to their voting shares under Section 53(1)(b). The Liquidator had issued a demand letter to VSL on 1 July 2026 and undertaken to continue recovery proceedings, if necessary, even after dissolution of the Corporate Debtor.
After considering the application, affidavits, Final Report and Form H, the Tribunal examined the requirements of Section 54 of the IBC and Regulation 45 of the Liquidation Process Regulations. It observed that all assets of the Corporate Debtor had been liquidated and the applicable regulatory requirements had been fulfilled. The outstanding recovery arising from the preferential transaction proceedings was also addressed through the Liquidator’s affidavit setting out the proposed recovery and distribution mechanism. Accordingly, holding that there was no further impediment to dissolution, the Tribunal allowed IA (IBC)-2315/2023 and ordered dissolution of M/s Vallabh Steel West Pvt. Ltd. with immediate effect. The Registry was directed to forward a copy of the order to the Registrar of Companies, Delhi and Haryana, and the IBBI within seven days.
