NCLT Mumbai Orders First Flight Couriers' Liquidation After Creditors Fail To Approve Resolution Plan

The Mumbai bench of the National Company Law Tribunal (NCLT) on Thursday ordered the liquidation of First Flight Couriers Ltd after the Committee of Creditors failed to arrive at a viable resolution plan that fully provided for EPFO dues and later voted to wind up the company.

“Despite being granted sufficient time to reassess and amend the resolution plan for compliance, the CoC has not accomplished this. Consequently, the CoC has made a decision to liquidate the Corporate Debtor as no viable proposal is available,” the Tribunal held.

A coram of Judicial Member K. R. Saji Kumar and Technical Member Anil Raj Chellan held that with the corporate insolvency resolution process period having expired and no compliant plan available, continuation of the process would serve no useful purpose.

“In view of the aforesaid facts and circumstances, this Bench is satisfied that the requirements of Section 33 of the Code are duly fulfilled and that continuation of CIRP would serve no useful purpose. Accordingly, this Adjudicating Authority has no option but to pass an order of liquidation of the Corporate Debtor,” the Tribunal said.

The corporate insolvency resolution process against First Flight Couriers was initiated on October 3, 2022, in a petition filed by Srinidhi Comprint Pvt Ltd under Section 9 of the Insolvency and Bankruptcy Code. Indrajit Mukherjee was initially appointed as Interim Resolution Professional and was later confirmed as Resolution Professional by the Committee of Creditors.

During the resolution process, a plan submitted by Autope Payments Pvt Ltd was approved by the Committee of Creditors with 78.41% voting share in December 2023. However, the Tribunal on June 26, 2024, remanded the plan to the Committee of Creditors after finding that it did not provide for full payment of dues owed to the Employees' Provident Fund Organisation.

Subsequent Committee of Creditors meetings between July and September 2024 failed to reach consensus on full payment of EPFO dues.

The Tribunal noted that in the 21st Committee of Creditors meeting held on December 26, 2024, creditors holding 69.65% voting share resolved to liquidate the company after finding no viable proposal available.

“The CoC, as the commercial decision-making body under the Code, has exercised its commercial wisdom and resolved to liquidate the Corporate Debtor in accordance with Section 33(2) of the Code,” the Tribunal said.

Accepting the Committee of Creditors' decision, the Tribunal ordered liquidation of First Flight Couriers and appointed Mahesh Kumar Gupta as liquidator.