On April 21, 2025, Punj Lloyd Ltd, a company undergoing liquidation, informed both BSE and NSE about the extension of its liquidation process. This was in compliance with Regulation 30(2) of the Securities and Exchange Board of India (Listing Obligations & Disclosure Requirements) Regulations, 2015 (SEBI LODR). The company reported that the National Company Law Tribunal (NCLT), Principal Bench, New Delhi, issued an order on March 25, 2025, granting an extension of six months for the completion of the liquidation process, moving the deadline to September 11, 2025.

This extension came as a result of an application submitted by the liquidator of Punj Lloyd Ltd, seeking additional time to finalize the sale of assets and complete various processes that are integral to the liquidation. The liquidation process involves complex sales of the company’s assets, including its ongoing contracts and critical infrastructure projects. In its application, the liquidator explained the complexities involved in the sale of the corporate debtor as a going concern, particularly highlighting the importance of completing ongoing projects related to national infrastructure, power, and defense sectors. These include significant projects like collaborations with the National Highway Authority of India (NHAI) and Nuclear Power Corporation of India Limited (NPCIL), which are essential for the country’s infrastructure development and national security.

Punj Lloyd, a major player in the Engineering, Procurement, and Construction (EPC) sector, emphasized the necessity of the going concern sale. This type of sale would maximize the value of its assets, benefiting the stakeholders involved, and potentially preserving employment for the company’s direct and indirect workforce. Under the going concern sale structure, the new buyer would acquire not only the tangible assets but also the intangible assets, such as the company’s brand, ongoing defense contracts, and skilled workforce.

The assets of Punj Lloyd Ltd are being sold in multiple sets, including the company’s plant and machinery, leasehold land, and ongoing projects. The sale is expected to bring in substantial funds that would help settle the liabilities of the company. The liquidation process will continue under the oversight of the liquidator, with further auctions planned for the sale of assets, which will be crucial in determining the final value recovered for the creditors.

This extension by NCLT reflects the complexities of the liquidation process, particularly for companies involved in large-scale, strategic projects. It allows the liquidator more time to ensure that all aspects of the process are completed effectively and that the interests of all stakeholders are met. The new deadline also reflects the ongoing efforts of Punj Lloyd to navigate through the liquidation in a manner that maximizes asset value and ensures the completion of key national projects.

With this extension, the company will continue its efforts to complete the liquidation process within the extended timeframe and bring closure to its financial and operational matters.

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