The National Company Law Tribunal (NCLT), New Delhi Bench, has ordered the liquidation of Hero Electric Vehicles Pvt. Ltd. after the insolvency resolution process failed to produce an approved revival plan. The order was issued on March 3, 2026.
The tribunal said that since no resolution plan received the required voting support from creditors within the prescribed timeline, the liquidation provisions under the Insolvency and Bankruptcy Code (IBC) would apply.
Insolvency Case Initiated by Operational Creditor
The insolvency proceedings against the company began after Metro Tyres Limited filed a petition under the Insolvency and Bankruptcy Code.
The tribunal admitted the case and started the Corporate Insolvency Resolution Process (CIRP) on December 20, 2024. Bhoopesh Gupta was appointed as the interim resolution professional and was later confirmed as the resolution professional overseeing the process.
Following the admission of the case, the resolution professional invited claims from creditors and formed a Committee of Creditors (CoC).
Committee of Creditors and Claims
The Committee of Creditors included financial institutions such as Bank of Baroda, South Indian Bank, IDFC First Bank, Kotak Mahindra Bank and others.
The committee held several meetings during the insolvency process to evaluate proposals submitted by potential investors interested in taking over the company.
Resolution Plans Could Not Secure Required Votes
Expressions of interest were invited from potential resolution applicants, and several companies initially showed interest. Two resolution plans were eventually submitted for consideration.
However, when the proposals were placed before the Committee of Creditors for voting, neither plan managed to secure the minimum 66 percent voting share required under the Insolvency and Bankruptcy Code.
The plan that received the highest support secured 47.66 percent of the votes, which was not sufficient for approval.
Even after further discussions and reconsideration, the creditors remained divided and no decision could be reached.
Tribunal Notes Deadlock Among Creditors
The tribunal noted that the creditors were divided, with nearly half supporting a resolution plan while the remaining members favored liquidation.
Since no plan was approved within the allowed CIRP timeline, the tribunal observed that continuation of the process would not serve any purpose under the IBC framework.
Under Section 33(1)(a) of the Insolvency and Bankruptcy Code, liquidation can be ordered if no resolution plan is approved before the expiry of the insolvency process period.
Liquidator Appointed
The tribunal has appointed Lekhraj Bajaj, an insolvency professional, as the liquidator to conduct the liquidation process of Hero Electric Vehicles Pvt. Ltd.
With the liquidation order, the powers of the company’s board of directors and management have ceased and are now vested with the liquidator, who will manage the liquidation proceedings and handle claims from creditors.
