NCLT Kochi Orders Liquidation of Malayalam Vehicles India Pvt Ltd

P. Balasubramanian appointed as Liquidator following unanimous decision by Committee of Creditors.

In a significant development, the National Company Law Tribunal (NCLT), Kochi Bench, has ordered the liquidation of Malayalam Vehicles India Private Limited. The decision, announced on October 31, 2025, came after the Committee of Creditors (CoC) resolved with a substantial majority to initiate the liquidation process. P. Balasubramanian, who served as the Resolution Professional, has been appointed as the Liquidator, marking a new chapter for the company embroiled in financial distress.

The decision follows a series of unsuccessful attempts to revive the company through the Corporate Insolvency Resolution Process (CIRP), initiated earlier this year. Malayalam Vehicles India, a former dealer for Tata Motors, had been grappling with financial challenges, compounded by the cancellation of its dealership and the inability to secure a viable resolution plan or expressions of interest from potential investors.

The process began with the appointment of an Interim Resolution Professional (IRP) and the formation of the CoC to explore resolution possibilities. However, despite efforts to solicit interest through Expressions of Interest (EOI), the lack of responses led the CoC, with 89.07% voting in favor, to recommend liquidation as the best course of action.

The NCLT's order mandates the Liquidator to take custody of the company's assets, ensure their protection, and oversee the liquidation process in compliance with the Insolvency and Bankruptcy Code (IBC) of 2016. The tribunal also emphasized the cessation of powers of the Board of Directors and key managerial personnel, transferring all authority to the Liquidator.

In his new role, Mr. Balasubramanian is entrusted with the responsibility of navigating the liquidation process, including issuing public notices, managing the company's assets, and coordinating with relevant stakeholders. The tribunal's decision also includes directives to cease any legal proceedings against the company, except those initiated by the Liquidator with tribunal approval.

This liquidation marks a crucial juncture for Malayalam Vehicles India, reflecting the stringent measures under the IBC to address insolvency and protect creditor interests. The tribunal's decision underscores the importance of adhering to statutory provisions and the regulatory framework set forth by the Insolvency and Bankruptcy Board of India (IBBI).

Bottom Line:

Insolvency and Bankruptcy Code - Order for liquidation of Corporate Debtor under Section 33(2) passed by NCLT, Kochi Bench with appointment of Resolution Professional as Liquidator.

Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Sections 33(2), 34, 34(4)(b), 35(1)(b) & (d), 33(1), 33(5), 33(7), 33(1) (b) (iii), Regulation 39B (3) of the CIRP Regulations, Regulation 39BA, Regulation 39C(1), Regulation 13 of the IBBI (Liquidation Process) Regulation, 2016.

P. Balasubramanian, (NCLT)(Kochi Bench) : Law Finder Doc Id # 2804956