NCLT Chandigarh Orders Winding Up Of Punjab State Biotech Corporation After Biotech Park Failed

The Chandigarh bench of the National Company Law Tribunal (NCLT) has ordered the winding up of Punjab State Biotech Corporation after finding that it had not carried on any business for many years.

The bench of Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh passed the order on July 8.

Punjab State Biotech Corporation was incorporated on January 12, 2011, as a not-for-profit company. It was set up to develop a Biotechnology Park at Knowledge City, Mohali, in collaboration with the Department of Biotechnology, Government of India, under a public-private partnership (PPP) model.

The project, however, failed to materialise after the originally allotted land was swapped with another parcel that suffered from connectivity issues. The selected developer subsequently withdrew from the project. Later attempts by state agencies, including PSIEC, PSCST, PBTI and GMADA, to revive the project also failed.

The Punjab government's decision to wind up the corporation was approved by the Council of Ministers on October 21, 2022. Thereafter, the Board of Directors resolved to dissolve the company. A special resolution for winding up at an extraordinary general meeting held on January 30, 2024.

The tribunal noted that notices had been served on the Registrar of Companies (RoC), the Regional Director and other authorities. The winding-up petition was also published in newspapers. No objections were received.

The RoC examined the company's financial records and stated that the petition could be considered on its merits. Relying on the company's statement of affairs and the RoC's observations, the Tribunal found that the company had remained inactive for many years. It accordingly ordered the company's winding up under Section 273 of the Companies Act, 2013.