UPS Express Pvt Ltd vs Greys Exim Pvt Ltd

Adv. Mily Ghoshal a/w Adv. Laxmi Sinha, Adv. Shweta Thanekar for the Applicant are present. Adv. Gautam Singhal, Adv. Rajat Chaudhary, Adv. Anjali Maurya appearing for Mr. Mehul Sadai, SRA/ Suspended Director present through VC.

This Interlocutory Application is filed by the Resolution Professional Mr. Prashant Jain under Section 33 of the Insolvency and Bankruptcy Code, 2016 (the Code) for initiating Liquidation Process against GREY'S EXIM PRIVATE LIMITED (Corporate Debtor).

The Corporate Debtor was admitted into CIRP by this Tribunal vide order dated 27/06/2023 in C.P. No. 255/MB/I&B/2020. Pursuant to the CIRP, the Committee of Creditors approved the Resolution Plan on 24/ 06/ 2024 with 99.31% voting share. The said Resolution Plan was thereafter approved by this Tribunal vide order dated 29 /0 1/ 2025.

The facts leading to the case in hand are as follows:

a. The petition numbered C.P No. 255/MB/I&B/ 2020 was filed by the Operational Creditor under Section 9 of the Code against the Corporate Debtor abovenamed. The said petition was admitted by this Tribunal vide order dated 27th June, 2023 whereby the Corporate Insolvency Resolution Process ("CIRP") with respect to the Corporate Debtor was commenced and moratorium under Section 14 of the Code was declared.

b. The Applicant was appointed as the IRP of the Corporate Debtor. The Applicant received the order on 05/07/2023. Subsequently, the Applicant was confirmed as the RP by the Committee of Creditors in its 1^st COC meeting held on 03/08/2023.

c. The CIRP resulted into the approval of Resolution Plan of the Corporate Debtor proposed by Mr. Mehul Sedani (also being the suspended director of the Corporate Debtor), and this Tribunal by its order dated 29/01/2025 was approved the Resolution Plan of the Corporate Debtor. It is pertinent to note that following was the timeline for implementation of the Resolution Plan :

d. The Applicant convened the First Meeting Monitoring Committee on 05/02/2025 wherein the Monitoring Committee was formally constituted with one representative each of the financial creditor and the SRA while the Applicant acted as the Chairman. The members also discussed the terms of the plan and schedule of payment wherein the SRA assured to make the payment before the due date.

e. However, as the time for first tranche of payment approached an email was received from the SRA wherein, he informed about his cancer diagnosis and requested for extension of timeline for making payment under the plan. The applicant convened the second meeting of the Monitoring Committee on 26/03/2025. The members informed the SRA that the committee is not empowered to take any decision in this regard and advised the SRA to approach this Tribunal for seeking such relief.

f. The SRA preferred LA. 1390/ 2025 seeking an extension of four months for making payment. This Tribunal vide order dated 08/ 04/ 2025 allowed the extension along with interest@ 12% of the delayed payments. Following is the tenure of implementation after extension :

g. The applicant then convened the third meeting of the Monitoring Committee on 04/ 04/ 2025 wherein the members briefed on the extended timeline for implementation of the resolution plan.

h. As the payment of 1^st Tranche under the extended timeline for implementation was approaching, another request was received from the SRA for seeking NOC from Bank of Baroda for sale of one of the properties of the corporate debtor mortgaged with the Bank. The proceeds of sale was proposed to be utilized for payment under the plan. The applicant convened the fourth meeting of the Monitoring Committee to discuss this request. However, the request for sale of property was declined as it amounted to making material changes in the Plan. Therefore, the SRA alternatively requested for extending the time for payment of 1^st Tranche till the 148th Day (i.e., 2nd Tranche). The Monitoring Committee while considering that the 1^st Tranche only constituted of CIRP cost and did not affect the payout to creditors was agreeable for this option provided the same is approved by this Tribunal.

j. The Applicant convened the fifth meeting of the Monitoring Committee on 14/10/2025 to discuss the proposal of SRA for making payment under the Plan partly through sale of two properties of the Corporate Debtor and remaining funds to be arranged from family and friends and appropriation of Performance Bank Guarantee. The Monitoring Committee rejected the proposal as it amounted to modification of the approved resolution plan. The representative of Bank of Baroda advised to prefer appropriate application to seek extension till 31 / 12/ 2025.

k. The SRA preferred another Application LA. 4884 / 2025 wherein vide order dated 29/10/ 2025 while rejecting the proposal for sale of property allowed further time for the payment of Rs.5.40 Cr. by the 15^th of November, 2025 and the balance of Rs. 2.10 CR by 31^st of December, 2025. l. The Applicant convened sixth meeting of the Monitoring Committee to discuss the failure on part of SRA to make part payment by 15/11/2025. The SRA requested for making the payment till 31/12/2025. The SRA informed that he has preferred another application for extension and requested for not taking any adverse action.

m. This Tribunal by its order dated 21.11.2025 in I.A. No.5386 of 2025 allowed extension till 31.12.2025 for making the payment. The applicant convened the seventh meeting of the Monitoring Committee to apprise the members regarding breach of extension allowed in LA. 5386/ 2025. This Tribunal by its order dated 08/01/2026 vide I.A. 55/2026 rejected the prayer of SRA for another extension till 16/01/2026 for making the payment. This Tribunal further allowed the creditor to take appropriate action under Section 33 of the Code.

n. The Applicant accordingly convened the eighth meeting of the Monitoring Committee on 31/01/2026 to discuss the future course of action. The SRA requested for another 30 days to make the payment. The representative of Bank of Baroda expressed difficulty for further extension due to lack of clarity on the payment. The members also discussed regarding the invocation of PBG which was renewed till 31/03/2026. Alternatively, the members discussed with the SRA about possibility of liquidating the funds backing the PBG for making the payment. After due discussion it was decided that the SRA shall communicate the possibility for implementation of resolution plan in full while the Applicant shall seek a legal opinion on the possibility of granting extension on the basis of confirmation by the SRA.

The Applicant convened the ninth meeting of the Monitoring Committee on 26/ 02/2026 wherein the following two options were considered.

However, as the SRA was unable to commit on the first option, the representative of Bank of Baroda decided to invoke the PBG and to file an application for liquidation of the Corporate Debtor.

Section 33(3) of the Code reads as under:

The present application has been filed after approval of SCC members, whose interest is prejudicially affected by such non infusion of requisite funds. It is evident that, despite granting numerous extensions to the SRA to deposit resolution money, the SRA has failed. Further, it is noted that SRA had been seeking extensions on medical ground, which this Tribunal generously considered, however, last two applications sought permission to dispose off certain assets of the corporate debtor, which was declined by this Tribunal as the approved resolution didn’t contain any such stipulation. This clearly indicates that the SRA does not have sufficient means to infuse necessary funds and has failed to infuse any money despite extension of time having been granted as per his requests. Accordingly, this Authority is left with no option except to pass an order for liquidation of the Company in the manner laid down in Chapter III of the Code. Hence ordered.

With the aforesaid observations and directions, the Interlocutory Application bearing IA(IBC)(LIQ.)/ 26(MB) of 2026, stands disposed of as Allowed. There would however be no order as to costs. Ordered Accordingly.