Case Law Details
Oriental Bank of Commerce Vs AVJ Infrastructure Private Limited (NCLT Delhi)
The National Company Law Tribunal, Principal Bench, New Delhi, considered an application filed under Section 54 of the Insolvency and Bankruptcy Code, 2016, seeking dissolution of M/s AVJ Infrastructure Private Limited after completion of the liquidation process. The application was filed by the Liquidator, Mr. Brijender Singh Deswal.
The Corporate Debtor had originally been admitted into the Corporate Insolvency Resolution Process (CIRP) on 30 September 2019 and was subsequently ordered to be liquidated on 6 November 2020. Following the liquidation order, the Liquidator conducted the liquidation process in accordance with the Insolvency and Bankruptcy Code and the Liquidation Process Regulations. Public announcements inviting claims were issued in multiple newspapers, and claims received from financial and operational creditors were verified and collated.
The Liquidator constituted Stakeholders’ Consultation Committees on multiple occasions and convened ten meetings during the liquidation process to discuss progress and issues relating to the liquidation estate. Valuers were appointed to assess the assets of the Corporate Debtor. The record showed that the Corporate Debtor did not possess substantial realizable assets other than movable asset “sand” and certain Not Readily Realisable Assets (NRRAs), including avoidance transaction proceedings pending before the Tribunal.
The Liquidator repeatedly attempted to realise value from the assets. Invitations for assignment of NRRAs were issued more than once after earlier attempts did not yield satisfactory responses. Eventually, in the ninth Stakeholders’ Consultation Committee meeting held on 16 June 2025, Bellcore Management Services Pvt. Ltd. was selected with 100% consent of the SCC for assignment of the NRRAs. The proposal included an upfront payment of Rs. 12 lakh and sharing of future recoveries from the assets and litigation proceeds in accordance with Section 53 of the Insolvency and Bankruptcy Code.
The tenth SCC meeting held on 29 September 2025 resolved unanimously to file an application for dissolution of the Corporate Debtor. The liquidation period, which commenced on 6 November 2020, had been extended several times by the Tribunal due to pending applications and unresolved asset issues. The Liquidator also submitted quarterly progress reports, audited statements of receipts and payments, final reports, and compliance certificates as required under the regulations.
The Tribunal noted that the liquidation account maintained with ICICI Bank had a nil balance and would be closed after dissolution. It also recorded that there were no further realizable assets available for distribution apart from the disputed “sand” asset and the NRRAs already assigned to the assignee. The pending avoidance transaction application bearing IA No. 2490/2020 was also assigned as part of the NRRAs and would thereafter be prosecuted by Bellcore Management Services Pvt. Ltd. in terms of the assignment agreement.
The assignment agreement provided that recoveries from the sale of sand and other assets, as well as proceeds from avoidance transaction recoveries, would be shared between the assignee and stakeholders. It was also proposed that CIRP costs already borne by the Committee of Creditors would be reimbursed in priority from future recoveries made by the assignee from the NRRAs.
The Tribunal observed that the Liquidator had complied with all procedural requirements under the Insolvency and Bankruptcy Code and the Liquidation Process Regulations. It took note of the Final Report, Form H compliance certificate, quarterly progress reports, statutory intimations, and details of liquidation activities placed on record.
Referring to Section 54 of the Insolvency and Bankruptcy Code and Regulation 45 of the Liquidation Process Regulations, the Tribunal held that dissolution can be granted where the assets of the Corporate Debtor have been completely liquidated and all statutory requirements have been fulfilled. The Tribunal found that there were no remaining assets requiring liquidation and that the pending applications and disputed assets had already been assigned to the purchaser.
The Tribunal further clarified that the pending avoidance transaction application would continue to be pursued by the assignee, Bellcore Management Services Pvt. Ltd., and that appropriate substitution applications should be filed for that purpose. It also recorded that recoveries from NRRAs would continue to be distributed in accordance with the assignment agreement and Section 53 of the Code.
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