NCLT Ahmedabad Orders Liquidation of Euphoria Technologies as SRA Defaults On Rs. 7.20 Crore Plan
The National Company Law Tribunal (NCLT) Ahmedabad has ordered the liquidation of Euphoria Technologies Private Limited, a Gujarat-based technology services company, after its successful resolution applicant, Roopyaa Tradebizz Limited, failed to follow the payment schedule under its approved Rs 7.20 crore resolution plan.
A coram of Judicial Member Chitra Hankare and Technical Member Velamur G. Venkata Chalapathy held that Roopyaa Tradebizz had clearly breached the terms of the plan and could not be given more time after repeatedly defaulting on payments.
Despite several extensions granted by the Monitoring Committee, the SRA failed to pay even the first instalment of Rs 1.38 crore, which was due on November 11, 2024.
The tribunal rejected the SRA's argument that payment was delayed because Euphoria's assets were not handed over. It pointed out that the resolution plan itself made this conditional. “Possession, control, or authority to sell assets was expressly made contingent upon payment of the upfront amount,” the tribunal said.
Since the SRA did not make that payment, it could not claim any right over the assets.
The tribunal also dismissed claims that disputes over CIRP costs justified the delay. It noted that the plan required the SRA to bear any shortfall in CIRP costs and that the resolution plan was approved on an “as is, where is, whatever there is, and without recourse” basis.
Euphoria Technologies entered the corporate insolvency process on May 17, 2023. After months of negotiations, its lenders unanimously backed a resolution plan put forward by Roopyaa Tradebizz Limited. The tribunal approved that plan on September 12, 2024, clearing the way for the company to be revived through payments totalling Rs 7.20 crore, to be made in instalments over a fixed period.
But the tribunal noted that the SRA paid only Rs 72 lakh as earnest money. It also claimed to have paid another Rs 95 lakh through demand drafts issued by a third party, but those drafts expired and were never realised. The coram recorded that apart from these amounts, no meaningful payment was made under the plan. It also pointed out that the SRA ignored interim directions to deposit Rs 50 lakh or provide a bank guarantee to cover the unpaid installments, even after being given time to comply.
The tribunal further noted that the SRA lacked sufficient net worth and had tried to rely on borrowed funds to meet the plan value. In these circumstances, the tribunal held that no further time can be extended for payment.
The Monitoring Committee has been directed to file an application for liquidation within seven days. The tribunal also ordered its registry to report the breach of the resolution plan to the Insolvency and Bankruptcy Board of India under Section 74(3) of the Insolvency and Bankruptcy Code for initiating action against the SRA.
Case Title: Kailash T Shah v. Roopyaa Tradebizz Limited and Anr.
Citation: 2026 LLBiz NCLT (AHM) 32
Case Number: IA No. 960 of 2025 In CP(IB) No. 78/AHM/2020
For Applicant: Advocates Nipun Singhavi and Mayur Jugtawat
For Respondent: Advocate Arjun Padhiyar for SRA