Mumbai, April 24: The National Company Law Tribunal (NCLT) has ordered the liquidation of Quality Care Dialysis Private Limited after no resolution plan was received despite multiple attempts during the Corporate Insolvency Resolution Process (CIRP).
No resolution plan received
“In view of the foregoing, and having regard to the facts of the case, no Resolution Plan was received despite the publication of Form G on 18.02.2025 and 03.06.2025, and the subsequent circulation of the Request for Resolution Plan to three prospective resolution applicants on 10.07.2025. In the absence of any viable resolution, the Committee of Creditors (CoC) has unanimously resolved to liquidate the Corporate Debtor in accordance with Section 33(2) of the Code. This Adjudicating Authority finds that the present application has been filed in accordance with the provisions of the Code and the CIRP Regulations and is satisfied that it is just and proper to order the liquidation of the Corporate Debtor,” the tribunal observed.
Background of insolvency proceedings
The insolvency proceedings were initiated in December 2024 on a petition filed by Fresenius Medical Care India Private Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC) against Quality Care Dialysis Private Limited.
During the CIRP, the Committee of Creditors (CoC)—comprising the sole operational creditor, Fresenius Medical Care India Pvt Ltd, with a 100% voting share—made several efforts to find a resolution applicant. Expressions of Interest (EOIs) were invited twice, and even after shortlisting three prospective resolution applicants, no resolution plan was received.
CoC opts for liquidation
With the CIRP period expiring and no viable resolution in sight, the CoC unanimously resolved to liquidate the company. The tribunal noted that the decision met all procedural requirements under the IBC and related regulations.
Accordingly, the tribunal ordered the liquidation of the corporate debtor and appointed KDRA Insolvency Professionals Private Limited as the liquidator, with a monthly fee of Rs 1 lakh plus applicable expenses and taxes.
Tribunal observations on regulations
“As regards Regulation 39C of the CIRP Regulations, the resolution passed by the Committee of Creditors in its fifth meeting expressly records that the liquidator shall first explore the option of sale of the corporate debtor as a going concern under Regulation 32A of the IBBI (Liquidation Process) Regulations, 2016. This Adjudicating Authority observes that the CoC resolution references Regulation 40D of the CIRP Regulations in this regard; however, it is noted that the erstwhile Regulation 32A of the IBBI (Liquidation Process) Regulations, 2016, which previously governed going concern sales, stands omitted pursuant to the IBBI (Liquidation Process) (Second Amendment) Regulations, 2025, vide notification dated October 14, 2025, with effect from 14.10.2025, and shall apply prospectively, i.e., to cases where liquidation by sale as a going concern has not commenced,” the tribunal further observed.
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Directions for liquidation process
The NCLT also directed that a fresh moratorium would come into effect and that the powers of the board of directors and key managerial personnel would cease. The liquidator has been instructed to take over the affairs of the company, issue a public announcement, and proceed with the liquidation process in accordance with law.
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