Pending Avoidance Proceedings No Bar to Liquidation: NCLT Mumbai Orders Winding Up Under IBC
Case Overview
Case Name: In re PCS Vaishali Patrikar (NCLT Mumbai)
Application Number: I.A. (IBC)(Liq.) No. 72/MB/2025 IN C.P. (IB) No. 344/MB/2020
Date of Order: 09/07/2026
Forum: National Company Law Tribunal, Mumbai
Background and Factual Matrix
The National Company Law Tribunal (NCLT), Mumbai Bench, passed a significant order allowing a liquidation application moved by the Resolution Professional under Section 33(2) of the Insolvency and Bankruptcy Code, 2016 (IBC). The entity subject to these proceedings is VR2 Land Development Private Limited, a private limited company incorporated on 07.05.2007, with its registered office situated at L-34, Lower Ground Floor, Prime Mall, Besides Irla Church, Irla Society, Vile Parle West, Mumbai – 400056. The company is registered with the Registrar of Companies, Mumbai, and its Memorandum of Association reflects its core business as that of builders, developers, infrastructure developers, and contractors.
Admission into CIRP
The Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) pursuant to an order dated 06.06.2023 passed by the Adjudicating Authority under Section 7 of the Insolvency and Bankruptcy Code, 2016. Following admission, Mr. Debi Prasanna Sarang was designated as the Interim Resolution Professional (IRP). A public announcement in Form A was issued on 08.06.2023, inviting claims from creditors of the Corporate Debtor.
In response to the public announcement:
- Four claims were received from financial creditors
- Three claims were received from operational creditors
However, only the claim filed by Gajendra Investment Limited — the original operational creditor at whose instance the CIRP was initiated — was verified. The remaining claims could not be verified due to the absence of adequate supporting documentation. As a result, the Committee of Creditors (CoC) was constituted with Gajendra Investment Limited as its sole member.
Procedural History: From CIRP to Liquidation
Replacement of IRP and Early CoC Deliberations
Following constitution of the CoC, its first meeting was convened on 05.07.2023. The IRP was subsequently replaced by PCS Vaishali Patrikar as the Resolution Professional, by an order dated 28.07.2023. Upon taking charge, the Resolution Professional convened the second meeting of the CoC on 24.08.2023, wherein the financial position of the Corporate Debtor and prospects of recovery were placed before the sole CoC member.
At this stage, the CoC expressed the view that the Corporate Debtor should be dissolved without liquidation. An application bearing I.A. 256/2024 was accordingly filed. However, this application was subsequently withdrawn by the Resolution Professional and was disposed of as withdrawn by the Adjudicating Authority vide order dated 02.09.2025.
Valuation and Transaction Audit
In the interregnum, the Resolution Professional sought time to complete the valuation exercise with respect to the Corporate Debtor. The Adjudicating Authority permitted this vide its order dated 11.10.2024. The Valuation Report dated 18.11.2024 was duly placed on record.
Additionally, the Resolution Professional appointed M/s. MJKS & Associates LLP, Chartered Accountants, as the Transaction Auditor to conduct a transaction audit of the Corporate Debtor's affairs. The audit unearthed certain transactions falling within the scope of: