NCLT Ahmedabad Orders Dissolution Of Siddhi Vinayak Logistic After Completion Of Liquidation
The National Company Law Tribunal, Ahmedabad (NCLT) on 7 October, ordered the dissolution of Siddhi Vinayak Logistic Limited after the completion of its liquidation process, holding that pending legal proceedings covered by the amended Insolvency and Bankruptcy Code (IBC) did not bar dissolution.
A Bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma allowed an application filed by Dushyant C. Dave, the compaby's Liquidator, under Section 54 of the IBC. It held:
“The pendency of a proceeding falling within Sections 54(1A) or 54(1B) does not, by itself, prevent dissolution where the statutory mechanism for its continuation has been addressed.”
The corporate insolvency resolution process (CIRP) against the company commenced on 12 September 2017 after the Tribunal admitted a petition filed by Punjab National Bank under Section 7 of the IBC. On 19 November 2018, the Tribunal ordered the company's liquidation and appointed Dave as Liquidator.
During liquidation, the Liquidator issued public announcements, prepared the list of stakeholders, filed the preliminary report and asset memorandum, and conducted multiple auctions between 2019 and 2022. The auctions resulted in the sale of approximately 5,000 movable assets.
The liquidation process faced hurdles after the Enforcement Directorate (ED) provisionally attached 6,170 vehicles belonging to the company under the Prevention of Money Laundering Act (PMLA). Although the authorities subsequently released 4,826 vehicles, they confirmed the attachment of the remaining 1,344 non-traceable vehicles.
The Liquidator realised approximately Rs. 148.61 crore through asset sales and recoveries, excluding the opening balance. He distributed the proceeds in accordance with Section 53 of the IBC towards CIRP costs, liquidation costs, secured creditors and other stakeholders. He also assigned Not Readily Realisable Assets (NRRA) through a transparent auction under Regulation 37A of the IBBI (Liquidation Process) Regulations, 2016.
Value wise Consultancy Private Limited emerged as the successful assignee after the Stakeholders' Consultation Committee (SCC) nominated it as the successful bidder. The Liquidator submitted that the assignment transferred all rights and future recoveries associated with these assets, leaving him with no further role in the related proceedings.
The Tribunal had rejected an earlier dissolution application in April 2024 because certain secured assets remained under the control of State Bank of India (SBI), outside the liquidation process, and were yet to be liquidated.
SBI subsequently confirmed that it would enforce its security independently under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), and indicated that the Liquidator could proceed with dissolution. The Liquidator submitted that the unrelinquished secured assets did not form part of the liquidation estate available for realisation by him and that SBI was entitled to retain the proceeds from their sale.
The Liquidator also filed the Final Report detailing the appointment of professionals, distributions to stakeholders, transfer of assets, professional fees and audited accounts of the liquidation account. He informed the Tribunal that the liquidation bank account had a zero balance.
During the pendency of the dissolution application, amendments introduced by the Insolvency and Bankruptcy Code (Amendment) Act, 2026 enabled dissolution notwithstanding specified pending legal proceedings.
Following the Tribunal's directions, creditors considered a mechanism to continue such proceedings after dissolution. A resolution authorising Bank of Maharashtra, Union Bank of India and Bank of Baroda to supervise and pursue the pending proceedings received 71.05% voting support.
The Bench noted that the liquidation estate had been substantially realised and distributed and that the Liquidator had duly filed the Final Report and Form H. It further observed that the remaining unrelinquished secured assets fell outside the liquidation estate and would be dealt with independently by SBI under applicable law.
Accordingly, the NCLT dissolved Siddhi Vinayak Logistic Limited under Section 54(2) of the IBC, discharged the Liquidator from his duties subject to any surviving liabilities under law, and directed him to preserve the liquidation records in accordance with Regulation 45A.
For Applicants: Advocate Shalin Jani