The NCLT Principal Bench has dissolved AVJ Infrastructure after it completed the liquidation process and assigned its residual assets, reinforcing the provisions under section 54 of the IBC.
NCLT Affirms Dissolution After Completion of Liquidation Process
The NCLT Principal Bench has ordered the dissolution of AVJ Infrastructure upon the completion of its liquidation process, asserting that the corporate debtor is entitled to such a dissolution per section 54 of the Insolvency and Bankruptcy Code (IBC). The decision reflects a clear interpretation of the provisions applicable to corporate dissolution post-liquidation.
This ruling underscores the importance of completing the liquidation process as a prerequisite for dissolving corporate debtors. The NCLT acknowledged the procedural compliance in liquidating assets and the assignment of residuals as a pathway to a smooth dissolution.
For legal practitioners, this case serves as a critical reminder of the procedural requirements under the IBC and the necessity for corporate debtors to properly execute liquidation processes to facilitate subsequent dissolution.
Citations
- NCLT Order (2026) Principal Bench
