Vrundavan Ceramic Morbi plant and receivables book go under the hammer in twin-parcel auction
The liquidator of Vrundavan Ceramic Private Limited has put the company’s Morbi-district manufacturing property and, separately, its entire book of financial assets up for sale in a two-block e-auction on 14 October 2026 — a parcel sale that, if it clears at reserve, would realise roughly Rs 21.85 crore against a corporate debtor that has been in the insolvency system since January 2020.
The sale notice, dated 14 September 2026 and issued from New Delhi, is made under Regulation 32(d) of the IBBI (Liquidation Process) Regulations, 2016, which permits the sale of a corporate debtor’s assets in parcels. Bidding will run on BAANKNET, the IBBI-designated e-auction platform operated by PSB Alliance.
What is on offer
Block 1 is freehold industrial non-agricultural land admeasuring 48,859 square metres together with the buildings on it, at Survey No. 143/2 on the 8-A National Highway, behind Gangotri Glazed Tiles, Village Dhuva, Taluka Wankaner, District Morbi — inside the Morbi–Wankaner ceramic manufacturing cluster. The reserve price is Rs 11,34,84,000, with earnest money of Rs 1,13,48,400 and bid increments of Rs 2 lakh. This block goes to auction from 12:30 pm to 1:30 pm.
Block 2 is described as securities and financial assets, comprising non-current investments, long-term loans and advances, trade receivables, short-term loans and advances, other current assets, and investments made by the corporate debtor in other companies. The reserve is Rs 10,50,00,000, earnest money Rs 1,05,00,000, increments Rs 2 lakh. It runs from 2:00 pm to 3:00 pm.
Both blocks carry unlimited five-minute auto-extensions.
The financial-assets block is the unusual feature
Auctioning a liquidation estate’s receivables, loans and advances and shareholdings in other companies as a single parcel — at a reserve almost matching the land and building — is not the standard shape of a Morbi ceramic liquidation, where realisations are typically driven by plant and land.
The structure transfers recovery risk wholesale to the bidder. Rather than the liquidator pursuing debtors and litigating recoveries over an extended period, whoever takes Block 2 acquires the claims and the task of monetising them. The notice offers no schedule, ageing profile or book value for any component of the block, and no list of the companies in which the corporate debtor holds investments. A bidder is being asked to price a portfolio it cannot see from the notice alone.
That matters because the sale is expressly on an “as is where is”, “as is what is”, “whatever there is” and “without recourse” basis — no warranties, no indemnities.
Six and a half years in the system
State Bank of India’s Section 7 application against Vrundavan Ceramic, CP(IB) 561 of 2018, was admitted by the NCLT Ahmedabad Bench on 21 January 2020, with Arvind Gaudana as resolution professional. The tribunal allowed liquidation on 27 September 2024 and appointed RRR Insolvency Service Experts LLP as liquidator.
Regulation 44 of the liquidation regulations requires a liquidator to endeavour to liquidate the assets and close the process within one year of the liquidation commencement date. This notice falls well outside that window. Whether the NCLT granted an extension, and whether earlier auction attempts failed, is not stated in the notice and could not be established from the public record at the time of filing.
The CIRP itself generated contested litigation over creditor classification. In Intec Capital Ltd v. Arvind Gaudana, the NCLT Ahmedabad Bench held that the NBFC could not be treated as a secured financial creditor in the absence of a charge registered under Section 77 of the Companies Act, 2013, notwithstanding a corporate guarantee the corporate debtor had given for facilities availed by Gokul Ceramics Private Limited and Umiya Ceramics Private Limited.
A separate application, IA/699(AHM)2023, filed by a State Tax Officer against the resolution professional under Section 60(5), appeared in NCLT Ahmedabad cause lists into 2026 with an indication of proceedings before the NCLAT. Personal guarantor proceedings against individuals connected to the corporate debtor have also featured in the bench’s lists.
Eligibility and process
Bidders must declare that they are not disqualified under Section 29A of the Code, per Clause 1(5A) of Schedule I to the liquidation regulations; the notice warns that earnest money will be forfeited if ineligibility is later established.
The last date for submitting the bid application is Saturday 10 October 2026, and for earnest money Monday 12 October 2026 by 5:00 pm. Earnest money must be deposited through the BAANKNET e-wallet.
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