Shivkumar Suppliers vs Madhur Nourishment Products LLP

IA(DIS.)/93/2025- The above IA is listed for pronouncement of the order. The same is pronounced in open court, vide a separate order.

The present application is filed by Mr. Prashant Jain, under Section 54 of the Insolvency and Bankruptcy Code, 2016 (“Code”), seeking following reliefs:

An application under Section 9 of the Code filed by M/s Shivkumar Suppliers was admitted by this Tribunal vide order dated 20.02.2020 in C.P. (IB) No. 236 of 2020, whereby the Corporate Insolvency Resolution Process (“CIRP”) of Madhur Nourishment Products LLP (Corporate Debtor) was initiated and Mr. Udaykumar Bhaskar Bhat was appointed as the Interim Resolution Professional (“IRP”). In its 2nd meeting, the Committee of Creditors (“CoC”) resolved to appoint Mrs. Akansha Rathi as the Resolution Professional (“RP”).

As no prospective resolution applicant could be identified during the CIRP, the CoC resolved to liquidate the Corporate Debtor. Accordingly, this Tribunal, vide order dated 01.03.2023, initiated the liquidation process of the Corporate Debtor and appointed the Applicant, Mr. Prashant Jain, as the Liquidator.

Pursuant to the liquidation order, the Applicant made a public announcement dated 06.03.2023 in Form B of Schedule II of the IBBI (Liquidation Process) Regulations, 2016, inviting claims from stakeholders on or before 31.03.2023. The public announcement was published in the following newspapers:

The Applicant constituted the Stakeholders Consultation Committee (“SCC”) in accordance with Regulation 31A of the IBBI (Liquidation Process) Regulations, 2016, the first meeting whereof was held on 08.03.2023.

The list of stakeholders of the Corporate Debtor is reproduced below:

The Liquidation Estate of the Corporate Debtor comprised of the following assets: (pg 18 of application)

The Fair Value and the Liquidation Value of the assets of the Corporate Debtor, as determined by the registered valuers appointed by the Applicant, is as follows:

The aggregate Fair Value of the assets of the Corporate Debtor, as per the said valuation, was determined at Rs. 5,84,89,055/-

As per the Final Report and the Compliance Certificate in Form H filed by the Applicant under Regulation 45(3) of the Liquidation Regulations, the total Liquidation Cost incurred during the Liquidation Process amounts to Rs. 33,74,615/-, comprising, inter alia, the Liquidator's fees, statutory publication expenses, litigation expenses, auction expenses, professional fees, and costs incurred towards protecting and preserving the assets of the Corporate Debtor.

The Applicant initially attempted to sell the Corporate Debtor as a going concern; four auction notices published between 31.05.2023 and 10.10.2023 (pg 50) failed for want of bids. Thereafter, in the 6^th Meeting of SCC held on 22.11.2023 on the recommendation of the SCC, the Applicant segregated the assets into distinct blocks and conducted auctions between 25.11.2023 to 15.03.2024, which failed either for want of bids or on account of failure of successful bidders to deposit the bid price within the stipulated 90-day period.

Thereafter the Applicant published an auction notice for sale of assets of the Corporate Debtor on 01.08.2024 which was to be conducted on 19.08.2024. The Land & Building of the Corporate Debtor was successfully sold to M/s Digvib Farmmates Agritech Private Limited in the auction conducted on 19.08.2024, and the Plant & Machinery of the Corporate Debtor was successfully sold to the same bidder in the auction conducted on 08.05.2025.

The amount realised from the sale of assets of the Corporate Debtor is lesser than the Liquidation Value of Rs. 4,24,29,305/-. The details of realisation from the sale of assets of the Corporate Debtor are as under:

The Applicant has distributed the amount realised to the stakeholders in accordance with Section 53 of the Code. The details of distribution made to the stakeholders are as under:

It is submitted that, on account of an inadvertent calculation error, the successful bidder, M/s Digvib Farmmates Agritech Private Limited, remitted an excess sum of Rs. 1,62,186/- towards the balance sale consideration payable for the Plant & Machinery. The said excess amount was refunded by the Applicant, as recorded in the Additional Affidavit filed on behalf of the Applicant clarifying the details of payment.

The Applicant had filed the Preliminary Report and the Asset Memorandum Report on 15.05.2023 under Regulation 12 and Regulation 34(4), respectively, of the Liquidation Regulations.

Further, in compliance with Regulation 15 of the IBBI (Liquidation Process) Regulations, 2016, the Applicant filed Quarterly Progress Reports. The details of the progress reports are as follows:

The Final Report as per Regulation 45 of the Liquidation Regulations, along with the Compliance Certificate in Form H filed under Regulation 45(3) of the Liquidation Regulations was filed by the Applicant on 09.10.2025.

The Liquidation Bank Account of the Corporate Debtor, bearing Account No. 923020013677190 maintained with Axis Bank Limited and opened in accordance with Regulation 41 of the Liquidation Regulations, has been successfully closed on 08.10.2025.

It is submitted that no preferential (Section 43), undervalued (Section 45), extortionate credit (Section 50), or fraudulent (Section 66) transactions were determined by the Applicant, and no application in this regard is stated to be pending before this Tribunal.

The Applicant submits that all the assets of the Corporate Debtor has been realized and the funds received have been utilized as per the provisions as laid down in the Code and the Regulations framed thereunder. Since there are no other assets of the Corporate Debtor left to be realized and no matter is pending in respect of the Corporate Debtor, the Applicant has filed the present application under section 54 of the Code seeking dissolution of the Corporate Debtor.

It is noted that the present application for dissolution has been filed after the expiry of the period of one year. In this regard, the Applicant submits the following:

We have heard the Counsel for the Liquidator and perused the material on record.

Vide order dated 14.05.2026 passed in IA/1982/2026, this Tribunal had allowed the application seeking replacement of Mr. Prashant Jain as the Liquidator of the Corporate Debtor and appointed M/s. Solvenza Advisory LLP, through its Authorized Representative, as the new Liquidator in his place.

At this juncture, it is relevant to quote Section 54 of The Insolvency and Bankruptcy Code, 2016 which provides as follows:

From the perusal of the Application along with the final report and the Compliance Certificate filed in Form-H by the Applicant, it is seen that the Corporate Debtor has been completely liquidated and no asset is available as reported by the Applicant. In this regard, the Applicant has annexed Statement of Receipts and Payments for the period from 01.03.2023 to 20.09.2025.

Accordingly, this Tribunal is of considered view that no assets are left with the Corporate Debtor which requires to be disposed of or realized. In view thereof, we are inclined to allow the present application to dissolve the Corporate Debtor under section 54 of Code, 2016.

Accordingly, we hereby order the dissolution of the Corporate Debtor, Madhur Nourishment Products LLP, with the following directions:

In the result I.A (Dis) No. 93 of 2025 is hereby allowed and disposed of C.P. (IB) 236 of 2020 is closed.