The NCLT Principal Bench has ordered the dissolution of AVJ Infrastructure following the completion of its liquidation process. This ruling confirms the eligibility for dissolution under Section 54 of the IBC.
Dissolution Granted After Liquidation Completion
The NCLT Principal Bench has granted dissolution to AVJ Infrastructure after validating the completion of its liquidation process. The tribunal emphasized that compliance with Section 54 of the Insolvency and Bankruptcy Code (IBC) is paramount for a corporate debtor's dissolution.
The judgment relied on the fact that once the liquidation process is complete, a corporate debtor is entitled to dissolution. The bench clarified that all necessary steps were executed regarding the liquidation, including the assignment of remaining assets. This ruling is a vital affirmation of the procedural requirements leading up to dissolution under the IBC framework.
The NCLT emphasized, "Once liquidation is completed, the entitlement to dissolution naturally follows as per the IBC provisions."
This development is crucial for insolvency practitioners and organizations undergoing similar processes, as it offers clarity on the steps necessary for concluding corporate insolvency resolution through dissolution.
Citations
- NCLT Judgement (2026) IBC 2
