Forged Bank Guarantee Scuttles Rescue Plan: NCLT Orders Liquidation of Unitech Transformers [Read Order]
The NCLT found that the CoC having 83.32% voting share had approved to initiate liquidation of the Corporate Debtor in its 43rd meeting held on 21.05.2025, and ordered the initiation of liquidation process
In a recent ruling, the National Company Law Tribunal ( NCLT ), Mumbai Court-II, allowed an application under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, ordering the liquidation of Unitech Transformers Pvt. Ltd. based on an application filed by the Resolution Professional.
The application was filed by Resolution Professional, Mr. Pravin R. Navandar, the Resolution Professional of Unitech Transformers Pvt. Ltd., a company that had been undergoing Corporate Insolvency Resolution Process (CIRP) since 22.03.2018. The Corporate Debtor had initially received approval for a resolution plan submitted by suspended promoters, which was later withdrawn due to unaffordable CIRP costs.
Subsequently, a resolution plan submitted by Millennium Infra Construction Pvt. Ltd. with co-applicants was approved with 99.96% CoC voting on 27.01.2025, followed by issuance of Letter of Intent (LOI) on 30.01.2025.
The application was filed after the successful resolution applicant (SRA) failed to submit a valid Performance Bank Guarantee (PBG) as required under the LOI. A PBG dated 08.04.2025 was purportedly shared by SBI via email, but the hard copy was never received. Upon verification, SBI confirmed that no such guarantee was issued and the named bank manager was fictitious, establishing that the PBG was forged.
The CoC, in its 42nd meeting, revoked the LOI with 83.32% voting, forfeited the ₹25 lakh EMD, and the RP lodged a forgery complaint on 22.05.2025. With no alternate plans available, the CoC approved liquidation with 83.32% voting, recommending Mr. Manish Lalji Dawda as liquidator.
The NCLT bench, comprising Ashish Kalia (Member, Judicial) and Sanjiv Dutt (Member, Technical), analyzed the contentions. The Tribunal held that Section 33(2) of the Code allows for liquidation when the committee of creditors, with approval of not less than sixty-six percent of the voting share, decides to liquidate the corporate debtor.
Consequently, the NCLT found that the CoC having 83.32% voting share had approved to initiate liquidation of the Corporate Debtor in its 43rd meeting held on 21.05.2025, and ordered the initiation of liquidation process.
The Tribunal appointed Mr. Manish Lalji Dawda, as the Liquidator in terms of Section 34 of the Code and issued comprehensive directions for the liquidation process, including handover of assets, investigation of financial affairs, submission of preliminary report, and other procedural requirements.
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