Ushdev International Enters Liquidation in 2025

Introduction

Ushdev International Ltd has officially entered liquidation, with the process commencing on October 16, 2025. This development marks the final stage of a protracted insolvency battle that began in 2018. The company has announced that stakeholders must submit their claims to the appointed liquidator by November 15, 2025. The move to liquidation follows the failure of a previously approved resolution plan, leaving asset sale as the only remaining option to settle outstanding debts.

The Path to Insolvency

The financial troubles for Ushdev International are not recent. The journey towards liquidation began when the Mumbai Bench of the National Company Law Tribunal (NCLT) admitted the company into the Corporate Insolvency Resolution Process (CIRP) on May 14, 2018. The insolvency petition was filed by the State Bank of India, a major financial creditor, citing significant defaults.

Following the admission into CIRP, efforts were made to revive the company. A Committee of Creditors (CoC) was formed, and on June 24, 2021, they approved a resolution plan submitted by M/s Taguda Pte Ltd. This plan received the NCLT's approval on February 3, 2022, offering a potential path for the company's revival.

Failure of the Resolution Plan

Despite the initial approvals, the resolution plan failed to materialize. The resolution applicant, M/s Taguda Pte Ltd, did not execute the plan within the stipulated timelines. The NCLT granted a two-month extension on December 8, 2023, to facilitate the payment, but the funds were not received.

Consequently, on February 9, 2024, the secured financial lenders, led by the State Bank of India, invoked the Bid Bond and Performance Security funds deposited by the resolution applicant. A total of Rs. 1,813.46 lakh, including interest, was forfeited. With the failure of the resolution applicant to implement the plan, the lenders filed an application with the NCLT seeking the liquidation of Ushdev International.

A Look at the Financials

The company's financial statements paint a grim picture of its health leading up to the liquidation. The auditor's report for the year ended March 31, 2025, issued a disclaimer of opinion, highlighting severe financial distress. Key figures from the report include:

• Net Loss: A net loss of Rs. 1,662.24 lakhs for the year.
• Negative Net Worth: A staggering negative net worth of Rs. 3,20,759.83 lakhs.
• Current Liabilities: Net current liabilities stood at Rs. 3,26,951.46 lakhs.

Given these figures and the pending liquidation proceedings, the auditors were unable to comment on the company's ability to continue as a 'going concern'.

Outstanding Dues and Defaults

Ushdev International had defaulted on repayments to a consortium of banks. The company's financial records show substantial outstanding amounts to several major lenders. The defaults were a primary trigger for the insolvency proceedings.

In addition to bank loans, the company also had significant disputed statutory dues related to Income Tax, Value Added Tax, and Central Sales Tax, further complicating its financial position.

What Happens Next?

With the liquidation order in place, a liquidator has been appointed to oversee the sale of the company's assets. The proceeds from the asset sales will be distributed among the creditors according to the priority established under the Insolvency and Bankruptcy Code, 2016.

All stakeholders, including financial creditors, operational creditors, and employees, are required to submit their claims with proof by the November 15, 2025 deadline. The submission and verification of these claims is the next critical step in the process.

Conclusion

The liquidation of Ushdev International Ltd marks the end of a long and unsuccessful attempt at corporate revival. After years under the CIRP and a failed resolution plan, the company's substantial negative net worth and massive debt burden left no other alternative. For creditors and other stakeholders, the focus now shifts to the claims submission process and the subsequent distribution of proceeds from the sale of the company's assets.