NCLT Hyderabad Orders Liquidation of Maharashtra-Based Pioneer Gas Power Limited

The National Company Law Tribunal (NCLT) at Hyderabad has recently ordered the liquidation of Maharashtra-based Pioneer Gas Power Limited after all attempts to revive the company through the insolvency process failed.

A bench comprising Judicial Member Rajeev Bhardwaj and Technical Member Sanjay Puri, in an order passed on November 11, allowed the liquidation application filed by Bright Star Resolution Professionals LLP, acting as the Resolution Professional for Pioneer Gas Power Limited.

The insolvency proceedings had originally been initiated by financial creditor IFCI Limited on January 12, 2024, following a default on a loan extended to the company. During the process, financial creditors submitted claims totaling Rs 4,137 crore, along with contingent claims of nearly Rs 447 crore. Despite multiple extensions, the Corporate Insolvency Resolution Process (CIRP), which lasted 615 days and ended on September 24, 2025, did not result in a viable resolution plan.

During the insolvency process, the company invited proposals from potential investors through two rounds of Expressions of Interest (EoI). In the first round, three proposals were received but rejected by the Committee of Creditors (CoC). In the second round, one proposal received the highest support but fell short of the required 66% voting threshold, securing only 61.677% of votes.

A One-Time Settlement proposal submitted by the company's promoters and a request to withdraw the insolvency petition were also unanimously rejected. Following these developments, the Resolution Professional recommended liquidation and proposed Aegis Resolution Services Pvt. Ltd., represented by either Avil Jerome Menezes or Harish Kant Kaushik, as the Liquidator. The estimated cost of liquidation was submitted at approximately Rs 4 crore to be initially funded by the creditors.

The tribunal, noting that “no fruitful purpose would be served by continuing the CIRP,” allowed the liquidation under Section 33 of the Insolvency and Bankruptcy Code (IBC). The liquidator will assume control of the company, including all powers of its board and management, and oversee the sale or settlement of assets.

Employees will be discharged unless the Liquidator decides to continue operations. The moratorium under Section 14 of the IBC will cease, and the Liquidator will follow all procedures prescribed under the Code and the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. 

Case Title: IFCI Limited Vs Pioneer Gas Power Limited

Case Number: C.P. (IB) No. 164/7/HDB/2021

For Applicant: Advocates Ramesh Babu with RP Ramanjaneyulu Gandluri

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