Pranav B Prem

The National Company Law Tribunal, Hyderabad Bench, comprising Justice Rajeev Bhardwaj (Judicial Member) and Sanjay Puri (Technical Member), has ordered the liquidation of Pioneer Gas Power Limited after more than 600 days of unsuccessful attempts to revive the debt-stricken company through the Corporate Insolvency Resolution Process (CIRP). The order, passed on November 11, 2025, came in response to a liquidation application filed by Bright Star Resolution Professionals LLP, serving as the Resolution Professional (RP).

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The CIRP had been initiated on January 12, 2024, upon a petition by financial creditor IFCI Limited following Pioneer Gas Power Limited’s default on substantial loan obligations. During the process, financial creditors submitted claims totaling over ₹4,137 crore, in addition to contingent claims amounting to approximately ₹447 crore. Despite a prolonged CIRP lasting 615 days—supported by multiple extensions granted by the Tribunal—the RP reported that no viable resolution plan secured the mandatory approval of the Committee of Creditors (CoC).

In the first round of Expressions of Interest (EoIs), three prospective resolution applicants submitted plans, all of which were rejected by the CoC. In the second round, only one plan gained majority backing but failed to reach the required 66% voting threshold, receiving only 61.677% votes even after re-voting under Regulation 39(3B) of the CIRP Regulations. The CoC also rejected a One-Time Settlement proposal from the promoters of the company as well as an application seeking withdrawal of insolvency proceedings under Section 12A of the Insolvency and Bankruptcy Code (IBC), demonstrating a unanimous loss of confidence in the company’s prospects of revival.

Given the failure of all revival attempts, the RP recommended liquidation. The CoC, in a joint lenders' meeting held on September 15–16, 2025, proposed M/s Aegis Resolution Services Pvt. Ltd. as the Liquidator, represented by either of its directors, Avil Jerome Menezes or Harish Kant Kaushik. The estimated cost of liquidation—calculated at ₹4.01 crore for a period of 12 months—was approved with directions that creditors initially fund these expenses until realization of the liquidation estate.

Accepting the RP’s recommendation, the Tribunal held that “no fruitful purpose would be served by continuing the CIRP” and ordered liquidation under Section 33(1) of the IBC. The Tribunal directed that the liquidation be carried out in accordance with Chapter III of Part II of the IBC and confirmed Aegis Resolution Services Pvt. Ltd. as the Liquidator. The order further stipulates that the moratorium under Section 14 shall cease with immediate effect, and all powers of the board and management of the company shall vest in the Liquidator.

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The Tribunal clarified that the order shall act as a notice of discharge to all officers, employees, and workmen of Pioneer Gas Power Limited, unless the Liquidator decides to continue operations for the purpose of maximizing the value of the assets. The Liquidator has additionally been directed to issue a public announcement declaring the company’s liquidation and to strictly adhere to the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. With these directions, the Hyderabad Bench allowed the liquidation application and formally commenced the winding-up of Pioneer Gas Power Limited.

Appearance

For Applicant: Advocates Ramesh Babu with RP Ramanjaneyulu Gandluri

Cause Title: IFCI Limited Vs Pioneer Gas Power Limited

Case No: C.P. (IB) No. 164/7/HDB/2021

Coram: Justice Rajeev Bhardwaj (Judicial Member), Sanjay Puri (Technical Member)