The NCLT has ordered the liquidation of APS Infra Engineers, ruling that the resolution plan was non-compliant due to fraudulent and undervalued transactions. This decision clearly prioritizes creditor protection and transparency within insolvency proceedings.
NCLT Orders Liquidation of APS Infra Engineers
The National Company Law Tribunal (NCLT) has ordered the liquidation of APS Infra Engineers after determining that the company's resolution plan was rendered non-compliant due to fraudulent and undervalued transactions. This order signifies the judiciary's commitment to enforcing transparency and protecting creditor interests in insolvency proceedings.
The Tribunal's decision underscores the necessity for resolution applicants to operate within the bounds of legal compliance and prudent valuation practices. By holding APS Infra Engineers accountable, the Tribunal sends a strong message regarding the seriousness of engaging in avoidance transactions at the expense of creditors.
This ruling affirms the role of the tribunal in safeguarding creditors by ensuring that only compliant resolution plans are considered, thereby reinforcing the integrity of the insolvency process.
For legal practitioners, the ruling draws attention to the importance of maintaining high standards of transparency and compliance when navigating insolvency and resolution frameworks, as failure to do so can lead to severe repercussions, including liquidation.
Citations
- APS Infra Engineers Case (2026) NCLT 109
