The Permo-carboniferous glacio-marine Talchir Formation of Dudhi Nala, West Bokaro Coal Basin, India, hosts soft-sediment deformation structures that originated from liquefaction and concomitant fluidization of unconsolidated sediments at or close to the sediment–water interface. Since liquefaction of water saturated sediments may be initiated by different endogenic or exogenic triggering agents, identification of the trigger needs careful analysis of the deformation structure, as well as depositional mechanism and environment of deposition of the host sediments. In-depth analysis of the studied liquefaction- and fluidization-induced soft-sediment deformation structures and sedimentary attributes of the host sediments of the studied succession unequivocally stand against the role of strong wave and tidal action, rapid sediment loading, mass-flow and subaqueous slides related shear stress, and water or gas seepage as the triggering agent. However, development of the soft-sediment deformation structures, close to sediment–water interface, closeness to syn-sedimentary fault, flowage along the tilt towards the fault, confinement within undeformed beds, episodic character and close similarities with structures that are formed during recent earthquakes, are consistent with seismic triggering for liquefaction. The studied shallow marine sediments record a sequel of climatic amelioration, glacial retreat, shallow marine sedimentation, glacio-isostatic rebound and related syn-sedimentary faulting and development of soft-sediment deformation structures.