NCLAT Upholds Liquidation of Ushdev International, Junks Taguda's ₹227-cr Revival Plea

Insolvency appellate tribunal NCLAT on Monday dismissed an appeal by Singapore-based Taguda Pte Ltd against the liquidation of Ushdev International, holding that the resolution applicant's "persistent and inordinate failure" to implement its plan for over three years left the NCLT with no other option.

A two-member NCLAT bench has upheld the order passed by the Mumbai bench of the National Company Law Tribunal (NCLT), which had directed initiating of liquidation for Ushdev International, which was engaged in ferrous metal trading and wind power generation.

Over the submission of Taguda -- one of the bidders for Ushdev International -- that it is ready to immediately pay ₹ 227 crore, the National Company Law Appellate Tribunal (NCLAT) said this proposal has already been rejected by the Stakeholders' Consultation Committee in their meetings.

They "are of the opinion that they have no faith in the Appellant (Taguda), and that the proposal made... is merely a delaying tactic without actual deposit of amount in liquidation account, without any intent to perform even after four years from the date of Plan Approval Order," observed a bench comprising Justice N Seshasayee and Technical Member Arun Baroka.

The NCLAT also imposed a cost of ₹ 5 lakh on Taguda, to be deposited in the Prime Minister's Care Fund, observing that the company had "misused the judicial process" by prolonging the proceedings.

Corporate Insolvency Resolution process (CIRP) was started against Ushdev International on May 17, 2018.

After the lenders rejected Taguda's bid, the resolution professional moved a plea for liquidation of Ushdev International on February 7, 2019.

NCLT had dismissed the liquidation plea and approved Taguda's bid on November 7, 2019. This, however, was immediately stayed by the NCLAT, which allowed the committee of creditors (CoC) time till June 25, 2021. The lenders, too, gave Taguda time till February 3, 2022, following a final approval by NCLT.

However, when the amount remained unpaid, the lenders led by the State Bank of India (SBI), invoked and forfeited the bank guarantee of ₹ 18.13 crore.

On July 5, 2024, NCLAT directed Taguda to deposit ₹ 225.14 crore in SBI Singapore/UAE branch within one week. Taguda had disclosed the source of funding as ANZA Capital Investment LLC, UAE, which was owned by Shaikh Mohammed Bin Sultan Bin Hamdan.

This time, the SBI informed Taguda that DFSA (Dubai Financial Services Authority) regulations prohibit accepting deposits from UAE state market and sought an immediate transfer as per the NCLAT Order.

Later, NCLAT dismissed Taguda's appeal and directed the NCLT to decide the liquidation application within three months.

The order was challenged before the Supreme Court, and was dismissed on July 23, 2025. On October 16, 2025, the NCLT approved the liquidation of Ushdev International. Taguda once again challenged the order before the appellate tribunal contending it was passed by the NCLT without hearing its submission.

On Monday, the NCLAT again dismissed Taguda's plea terming it an "impermissible collateral attack" on findings that had already attained finality up to the Supreme Court.

SBI told the appellate tribunal that Taguda repeatedly deviated from directions to park over ₹ 225 crore abroad, at one point proposing a "letter of comfort" instead of actual funds, and later citing a Dubai-based financier whose deposits were barred under UAE market regulations.

The NCLAT noted that Taguda's last-ditch proposal for a one-time lumpsum payment, moved through an interlocutory application in 2025, was filed only after arguments in the liquidation case had concluded and orders were reserved -- a timing the tribunal said "betrays the lack of bona fides