Companies under NCLT watch concerned over liquidation, raw bidders

Kolkata bench of the NCLT ordered liquidation proceedings against Nicco Corporation after its lenders voted against the corporate resolution plans

With Kolkata-based Nicco Corporation going through liquidation, other companies whose cases are being examined by the National Company Law Tribunal (NCLT) have raised concerns over the manner in which the process is evolving.

On Tuesday, the Kolkata bench of the NCLT ordered liquidation proceedings against Nicco Corporation, a cable-manufacturing firm, after its lenders voted against the corporate resolution plans prepared by the company. 

“In asset liquidation, nobody stands to benefit. Since here the assets, not the company, are being sold, and since the assets are of depreciating nature, nobody gains, not even the lenders,” a senior executive of an NCLT-listed