India's National Company Law Tribunal (NCLT) has ordered the liquidation of heavily indebted shipbuilder ABG Shipyard.
A last-minute plea by bidder Liberty House failed, the Economic Times reported.
The steel group claimed its offer for the yard exceeded its liquidation value.
Lenders had previously rejected two bids from Liberty House.
Last year, Sanjeev Gupta-led Liberty House offered to pump INR 52bn ($798m) into the yard over a five to 10-year period, including INR 4bn upfront.
It had wanted to complete pending ship orders and then carry on with a combination of newbuilding and shipbreaking at the plant.
ABG's bankruptcy restructuring was approved by NCLT in 2017.
Lender ICICI, which applied for the process, said the struggling yard had defaulted on INR 45bn of loans, which ABG confirmed.
