Kerala High Court Revives Two KELTRON Subsidiaries After Two Decades, Recalls Winding Up Orders

The Kerala High Court has recalled its winding up orders against two subsidiaries of Kerala State Electronics Development Corporation Ltd (KELTRON), allowing the revival of Keltron Power Devices Ltd (KPDL) and Keltron Rectifiers Ltd (KRL). The court noted that there was no legal or procedural bar to reopening the companies in view of changed circumstances and fresh government approval. KELTRON is a state-owned electronics major engaged in IT hardware and software. Its group companies also manufacture electronic components like capacitors and resistors for domestic and global markets. A bench of Justice Viju Abraham passed the order on December 11, 2025, while allowing applications filed by KELTRON seeking recall of the winding up orders, discharge of the official liquidator and approval of a revival plan for the two companies. The court recorded that both the Kerala government and the official liquidator had expressed no objection to the revival proposal, and that KELTRON had undertaken to clear all dues and liabilities of the companies. Keltron Power Devices had been ordered to be wound up by the High Court on November 14, 2005, while Keltron Rectifiers was ordered to be wound up on March 6, 2006. Both orders followed opinions of the now-defunct Board of Industrial and Financial Reconstruction, which had recommended liquidation on the ground that the companies were no longer financially viable. KELTRON told the court that circumstances had substantially changed since then and that revival had become feasible. It relied on an in-principle approval granted by the Kerala government on May 5, 2025, approving a proposal for retrieval and utilisation of 12.19 acres of land belonging to the two companies from the official liquidator. Under the proposal placed before the Court, part of the land will be sold to the Centre for Materials for Electronic Technology (C-MET) to clear outstanding dues of Rs 6.64 crore, while the remaining land will be used for a joint venture between C-MET and KELTRON to set up a facility centre for sensor manufacturing and testing. The official liquidator informed the Court that it had no objection to the revival, subject to KELTRON filing an affidavit undertaking full responsibility for the dues and liabilities against the company. In its affidavit, KELTRON stated that both entities are its wholly owned subsidiaries, that there are no secured creditors, and that meetings of members were therefore unnecessary. Taking note of the government approval, the undertakings given by KELTRON and the absence of objections, the Court observed, “Since the Government of Kerala, as well as the Liquidator, expressed no objection to the proposal submitted by the applicant and the applicant has filed an affidavit undertaking responsibility for any dues and liabilities against the company, I am of the view that the above Company Applications could be allowed.” The court accordingly recalled the winding up orders, discharged the official liquidator and permitted KELTRON to take over the assets, liabilities and records of both companies, paving the way for their revival. Case Title: Kerala State Electronics Development Corporation Limited & Ors Case Number: Co.Appl. No. 212/2025 in Co.Pet. No. 40/2001Citation: 2025 LiveLaw (Ker) 835 For Applicant: Advocates Nebil Nizar, Krishna Moorthy, Akhil J. Chandran For Official Liquidator: Standing Counsel K. MoniClick Here To Read/Download Order

Kerala High Court Revives Two KELTRON Subsidiaries After Two Decades, Recalls Winding Up Orders

Kirit Singhania

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