# In the matter of NAYAAGARH SUGAR COMPLEX LIMITED

> NCLT judgment dated 2026-02-13. Citation: TCN-2026-NCLT-00151. The case involves an application for the initiation of liquidation process for Nayaagarh Sugar…

- **Court:** NCLT
- **Order date:** 13 Feb 2026
- **Citation:** TCN-2026-NCLT-00151
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-cuttack/nayaagarh-sugar-complex-limited-04c71ce6

## Summary

### Background

The case involves an application for the initiation of liquidation process for Nayaagarh Sugar Complex Limited under Section 33(1)(a) of the Insolvency and Bankruptcy Code, 2016.

## Facts

The Corporate Insolvency Resolution Process (CIRP) was initiated against Nayaagarh Sugar Complex Limited by Encore Asset Reconstruction Company Private Limited.

Mr. Devendra Umrao was appointed as the Interim Resolution Professional (IRP) and later as the Resolution Professional (RP).

The CIRP period was extended multiple times, including an exclusion of 243 days, but no resolution plan was submitted.

The Committee of Creditors (CoC) failed to approve further extensions or a resolution for liquidation.

The CoC did not contribute to the CIRP costs, hindering the RP's ability to make payments to professionals.

The Corporate Debtor lacked legal title to its primary assets, which remained vested with Cooperative Sugar Industries Limited.

…

## Issues and analysis

### Issue 1: Whether the Corporate Debtor is a fit case for liquidation under Section 33(1)(a) of the Insolvency …

**Ratio:** Section 33(1)(a) of the Code allows for liquidation when the CIRP period expires without

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**Reasoning:** The maximum permissible period for CIRP has expired, and no resolution plan has been

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**Interpretation:** The Adjudicating Authority interpreted Section 33(1)(a) to mandate liquidation

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**Application:** The Adjudicating Authority applied Section 33(1)(a) and ordered the liquidation

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## Parties

- **Judges:** Deep Chandr…; Banwari Lal…
- **Appellants:** Encore Asset…; DEVENDRA…
- **Respondents:** Nayaagarh Sugar…

## Timeline

- **2021-12-22 — Admission in…**: Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP)…
- **2022-01-25 — First CoC M…**: The 1st meeting of the CoC was held on 25.01.2022, at which the appointment of IRP as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 33(1) — Initiation of liquidation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-33)

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