NCLT Amaravati Directs Liquidation of Vyshnavi Spices LLP Under Section 33(2) of IBC, 2016

Background and Case Overview

The Amaravati Bench of the National Company Law Tribunal (NCLT) has passed a liquidation order in respect of M/s Vyshnavi Spices LLP, a Limited Liability Partnership incorporated on 19.03.2018 under the LLP Act, 2008. The order was passed in IA (IBC)(Liq.)/4/2026 in CP (IB)/66/7/AMR/2024, decided on 21 September 2026, following the complete failure of the Corporate Insolvency Resolution Process (CIRP) to yield a viable resolution outcome.

The liquidation application was filed by the Resolution Professional (RP), Mr. Kaspa Venu Gopal, under Section 33(2) of the Insolvency and Bankruptcy Code, 2016, after the Committee of Creditors (CoC) unanimously resolved — with 100% voting share — to wind up the Corporate Debtor, having found no feasible resolution plan available for approval.

Initiation of CIRP: SIDBI's Section 7 Petition

The proceedings trace their origin to a petition filed by Small Industries Development Bank of India (SIDBI), the sole Financial Creditor, under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.

This Adjudicating Authority admitted the petition and initiated the CIRP against M/s Vyshnavi Spices LLP vide its Order dated 06.06.2025, simultaneously appointing Mr. Kaspa Venu Gopal as the Interim Resolution Professional (IRP). He was subsequently confirmed as the RP in the 1st CoC meeting, in accordance with Section 22(2) of the IBC.

Following the admission order, the RP made the mandatory public announcement in Form-A under Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) on 09.06.2025, inviting claims by 20.06.2025. The announcement was published in Eenadu (Guntur, Vijayawada, and Ongole editions) in Telugu and The Times of India in English.

Non-Compliance by the Corporate Debtor

A significant concern flagged during the CIRP was the Corporate Debtor's persistent failure to maintain statutory compliance. Despite its incorporation in 2018, M/s Vyshnavi Spices LLP had not filed any annual returns or financial statements with the Ministry of Corporate Affairs (MCA) since the date of its incorporation.

Owing to the suspended Designated Partners' continued non-cooperation and their refusal to furnish books of accounts and financial records, the RP was compelled to file IA No. 254/2025 under Section 19(2) of the IBC seeking appropriate directions. Pursuant to the Tribunal's intervention, the suspended partners provided tally data and backup files to the RP.

The RP thereafter appointed M/s KKM & Associates as the Auditor, after due consultation with SIDBI (the sole CoC member), to audit the Corporate Debtor's accounts from financial year 2018-2019 through to the date of CIRP commencement and to compile the financial statements accordingly.

CIRP Process: Expression of Interest and Resolution Plans

The RP conducted the CIRP in accordance with the applicable statutory framework:

  • The Information Memorandum under Regulation 36 of the CIRP Regulations was placed before the CoC in its 4th meeting held on 03.10.2025, along with completed valuation reports from two Registered Valuers appointed under Regulation 35(1) of the CIRP Regulations. The fair value and liquidation value were determined by averaging both reports as required under applicable regulations.

  • The Invitation for Expression of Interest (EoI) was approved by the CoC in its 5th meeting held on 16.10.2025.