# PPG Asian Paints Pvt Ltd vs. Coastal Automobiles Pvt Ltd

> NCLT judgment dated 2026-07-08. Citation: TCN-2026-NCLT-00776. PPG Asian Paints Pvt Ltd initiated Corporate Insolvency Resolution Process (CIRP) against…

- **Court:** NCLT
- **Order date:** 8 Jul 2026
- **Citation:** TCN-2026-NCLT-00776
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-amaravati/ppg-asian-paints-pvt-ltd-vs-coastal-automobiles-pvt-ltd-5sodb

## Summary

### Background

PPG Asian Paints Pvt Ltd initiated Corporate Insolvency Resolution Process (CIRP) against Coastal Automobiles Pvt Ltd. An Interim Resolution Professional (IRP), Mr. K.K. Balasubramanian, was initially appointed but failed to initiate the CIRP. Subsequently, R. Hari Prasad was appointed as IRP. Investigations revealed that the Corporate Debtor had been non-operational for 10 years, with no assets, records, or traceable directors/promoters. Claims were received from financial creditors (State Bank of India and PPG Asian Paints Pvt Ltd) and operational creditors (EPFO, ESIC, and Income Tax Office). The Committee of Creditors (CoC) was constituted, and after deliberations, it resolved for early dissolution of the Corporate Debtor due to the lack of assets and untraceable

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## Facts

PPG Asian Paints Pvt Ltd initiated CIRP against Coastal Automobiles Pvt Ltd under Section 7 of IBC, 2016, for a default of Rs.4,00,000/-.

The Adjudicating Authority admitted the Corporate Debtor into CIRP on 09.11.2021.

Mr. K.K. Balasubramanian was initially appointed as IRP but failed to initiate the CIRP process.

R. Hari Prasad was appointed as Interim Resolution Professional (IRP) on 10.10.2025 to conduct the CIRP.

The Corporate Debtor has been non-operational for the past 10 years.

No office or shop of the Corporate Debtor was found at its registered address or branch locations.

Directors/Promoters of the Corporate Debtor are untraceable, having vacated premises around 10-14 years ago.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, Coastal Automobiles Private Limited, should be dissolved without …

**Ratio:** The NCLT can order direct dissolution of a corporate debtor without liquidation if it is

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**Reasoning:** The Corporate Debtor has been non-operational for 10 years, with no physical presence,

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**Interpretation:** The objective of the IBC is resolution or expeditious dissolution to maximize

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**Application:** In this case, the facts strongly support direct dissolution as there is no

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## Parties

- **Judges:** KISHORE VEMULAPALL…; UMESH KUMAR…
- **Appellants:** PPG Asian Paints…; R. Hari P…
- **Respondents:** Coastal Automobile…; Coastal Automobile…
- **Other parties:** State Bank of…; PPG Asian Paints…; +7 more
- **Advocates:** R. Hari P…

## Timeline

- **2019-12-19 — CIRP Init…**: PPG Asian Paints Pvt Ltd initiated CIRP against Coastal Automobiles Pvt Ltd under Section…
- **2020-01-21 — Notices to Corporate…**: Adjudicating Authority ordered notices to the Corporate Debtor, returned with 'No such…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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