NCLT Orders Liquidation of Dalmia Life Care After CoC Approves With 72.19% Vote

Failed Resolution Attempts Lead to Liquidation Order

The New Delhi Bench of the National Company Law Tribunal (NCLT) has ordered the liquidation of Dalmia Life Care Private Limited under Section 33(2) of the Insolvency and Bankruptcy Code (IBC), 2016 . The order, delivered on 19 August , came after the Committee of Creditors (CoC) passed a resolution with 72.19% voting share to liquidate the company, following failed attempts to revive it through the corporate insolvency resolution process (CIRP). A bench comprising Judicial Member Justice Jyotsna Singh and Technical Member Anu Jagmohan Singh appointed Prabhat Ranjan Singh as the liquidator.

The Road to Liquidation : A Timeline of Events

The CIRP against Dalmia Life Care commenced on 12 September 2024 , pursuant to a petition filed by operational creditor Ritesh Kumar (HUF). Rakesh Kumar was initially appointed Interim Resolution Professional (IRP), but the CoC replaced him with Rabindra Kumar Mintri as Resolution Professional in December 2024 . The Tribunal confirmed this appointment in January 2025 . Over the following months, the CoC extended the CIRP period multiple times to allow for resolution.

In July 2025 , Form G was published inviting Expressions of Interest (EOIs). Two prospective resolution applicants emerged: Real Value Infotech Projects Pvt. Ltd. and individual Piyush Jain. However, Real Value withdrew in August 2025 , and despite repeated extensions granted to Jain—including additional time until October 2025—he failed to submit a compliant resolution plan . Jain eventually proposed a settlement of Rs. 15 lakh, including CIRP costs, which the CoC rejected as commercially unviable.

CoC's Decision: Adequate Opportunities Exhausted

At its 9th meeting on 17 October 2025 , the CoC concluded that sufficient opportunities had been provided and unanimously resolved to initiate liquidation proceedings. The resolution, approved with 72.19% of the voting share , authorised the RP to file an application under Section 33(2) of the IBC. In June 2026 , the CoC further approved liquidation costs of Rs. 1.5 lakh and fixed the liquidator's professional fee at Rs. 1 lakh. The RP filed an additional affidavit confirming these approvals, as directed by the Tribunal.

Legal Basis: Section 33(2) Satisfied

The Tribunal examined Section 33(2) of the IBC, which mandates that where the CoC resolves (by not less than 66% of the voting share ) to liquidate the corporate debtor , the Adjudicating Authority shall pass a liquidation order. Since the CoC's resolution achieved 72.19%, the statutory threshold was clearly met. The Tribunal found no reason to deviate from the CoC's decision.

Key Observations from the Bench

"In view of the provision of the Section 33(2) of IBC 2016 as stated above and the resolution passed by CoC with 72.19% vote in the 9th Meeting held on 17.10.2025 to liquidate the Corporate Debtor , we hereby order the liquidation of the Corporate Debtor M/s. Dalmia Life Care Private Limited."

Final Order and Implications

The Tribunal allowed the application and ordered the liquidation of Dalmia Life Care. It appointed Prabhat Ranjan Singh as the liquidator under Section 34(1) of the IBC and directed that a fresh moratorium under Section 33(5) commence, replacing the earlier moratorium . All powers of the board of directors vested in the liquidator. The liquidator must submit a preliminary report within 75 days from the liquidation commencement date. The order also mandated cooperation from the corporate debtor 's personnel and directed the liquidator to pursue recovery of dues and pending applications. Copies of the order were sent to the Corporate Debtor , CoC members, IBBI, and the Registrar of Companies .