NCLT Orders Liquidation of Pioneer Gas Power Limited Due to Failed Resolution Attempts

Hyderabad Bench of NCLT Initiates Liquidation After Resolution Plans Fail to Garner Necessary Approval from Creditors

In a significant ruling, the National Company Law Tribunal (NCLT), Hyderabad Bench - II, has ordered the liquidation of Pioneer Gas Power Limited after multiple attempts to approve a resolution plan failed. The decision was pronounced by the tribunal comprising Sri Rajeev Bhardwaj, Member (Judicial), and Sri Sanjay Puri, Member (Technical), on November 11, 2025.

The case, initiated by M/s Bright Star Resolution Professionals LLP, acting as the Resolution Professional (RP) for the corporate debtor, highlighted the failure of the Committee of Creditors (CoC) to approve any resolution plan with the requisite 66% majority, even after a second round of voting. Despite extensive efforts and extensions of the Corporate Insolvency Resolution Process (CIRP) period, none of the proposed plans could secure the necessary support.

The RP, after receiving claims from various creditors amounting to over Rs.4,137 crores, constituted the CoC. However, the resolution plans submitted by prospective resolution applicants did not meet the necessary approval threshold. A subsequent One Time Settlement (OTS) proposal by the promoters was also rejected by the CoC, leading the RP to seek liquidation.

The tribunal has appointed M/s Aegis Resolution Services Pvt. Ltd as the liquidator, represented by its directors Mr. Avil Jerome Menezes or Mr. Harish Kant Kaushilk. The liquidation will be conducted in accordance with Chapter III of Part II of the Insolvency and Bankruptcy Code (IBC), 2016. The liquidator is tasked with managing the liquidation process, issuing public announcements, and ceasing the moratorium on legal proceedings against the corporate debtor.

This decision underscores the stringent requirements for resolution plan approvals under the IBC and highlights the tribunal's role in ensuring the efficient resolution of insolvency cases.

Bottom Line:

Application for liquidation of Corporate Debtor under Section 33(1)(a) of the IBC, 2016 allowed as no resolution plan received requisite approval from CoC even after second round of voting.

Statutory provision(s): Section 33(1)(a), Section 34, Sections 35 to 50, Section 52 to 54, Section 14 of the Insolvency and Bankruptcy Code, 2016

M/s Bright Star Resolution Professionals LLP, (NCLT)(Hyderabad Bench - II) : Law Finder Doc Id # 2807813