The Chandigarh bench of the National Company Law Tribunal (NCLT) has refused, at this stage, to send SEL Textiles into liquidation and has ordered a fresh round of resolution plans, according to LiveLawBiz on 20 October 2026. The order dates from 28 September. The bench was Judicial Member Khetrabasi Biswal and Technical Member Kaushalendra Kumar Singh. Spectate Media found no report of an appeal.
The background
Central Bank of India took SEL Textiles, which ran four interdependent manufacturing units, into insolvency under Section 7, and the process began on 10 August 2023. The resolution professional, Rajeev Sharma, invited plans, including cluster-wise bids, and the committee of creditors rejected all of them as commercially unviable because their values were below the liquidation value. At its 32nd meeting, the committee voted for liquidation by a 92.83% majority, and also recommended exploring a compromise and a going-concern sale during liquidation. The report gives no claim amounts, liquidation value or bidder numbers.
The arguments
The suspended management, led by Neeraj Saluja, said liquidation was premature, that plans were rejected only because the liquidation value was understated, and raised attachments under the money-laundering law and erosion of value. The resolution professional said the suspended director had no vote and could not challenge a decision of the creditors' commercial wisdom.
The tribunal's reasoning
It said the earlier rejection was not decisive on whether revival was possible. The four units depend on each other, so selling them separately risked fragmenting value. Changes to the liquidation regulations removed going-concern sale provisions, which could make revival harder, and new applicants had come forward after earlier deadlines. It cited Section 33(1A), added by the 2026 IBC amendment, which allows a resolution process to be restored before liquidation. It called this one final, strictly time-bound chance and said it did not mean to override the creditors' commercial wisdom.
The directions
The liquidation application was dismissed at this stage, although the headline says deferred. The resolution professional must issue a fresh invitation for plans for SEL Textiles as one undertaking and finish within 120 days, followed by a status report. The report does not say when the 120 days begin.
Key numbers
- Creditors' vote for liquidation: 92.83% (At the 32nd meeting)
- Time for fresh plans: 120 days (Then a status report)
- Manufacturing units: 4 (Interdependent)
- CIRP start: 10 August 2023 (Petition by Central Bank of India)
What boards and CFOs should note
Three points stand out. First, a creditors' vote for liquidation can be paused where revival looks possible. Second, interdependent units weigh in favour of selling the business whole. Third, the new Section 33(1A) route is now being used.
Source: LiveLawBiz, 20 October 2026. This is a summary of a news report, published as general information. It is not legal, tax or investment advice.
This article is journalism and commentary. It is not a recommendation to buy or sell any security, and it is not professional advice. Read the full disclaimer.
