NCLT Approves ACME Cleantech's Resolution Plan For Reliance Big Private Limited [Read Order]

The Resolution Plan for Reliance Big Private Limited, which was submitted by ACME Cleantech Solutions Private Limited, has been authorized by the National Company Law Tribunal (NCLT), Mumbai bench, which is composed of Justice V. G. Bisht (Judicial Member) and Shri Prabhat Kumar (Technical Member).

In accordance with Section 30(6) of Section 31(l) of the Insolvency and Bankruptcy Code, 2016 ("Code") and Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons), 2016 ("IBBI Regulations"), Mr. Rohit Ramesh Mehra ("Applicant"), Resolution Professional of Reliance Big Private Limited ("Corporate debtor") filed the application to have the Resolution Plan and its Addendum, submitted by Mr. Manoj Kumar Upadhyay ("Successful Resolution Applicant/SRA"), approved by the Committee of Creditors by a 100% majority.

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The Corporate Debtor provides electricity to the Tamil Nadu Electricity Board and owns two land parcels in the Thiruvallur and Tirunelveli Districts as well as a wind energy plant in Tamil Nadu.  The corporate debtor was subject to a Mandatory Prepayment Event, whereby the corporate debtor was required to make sure that all outstanding amounts were deposited in the designated accounts, after failing to maintain the security cover in accordance with the terms of the transaction documents pertaining to the subscription of debentures.

In accordance with section 7 of the Code, the NCLT allowed the corporate debtor to participate in the Corporate Insolvency Resolution Process (CIRP).  Creditors were invited to submit claims in a public announcement.  Mr. Manoj Kumar Upadhyay's resolution plan was the only one that was received.  The Committee of Creditors ("CoC") expressed worries about compliance and contingencies.  On February 20, 2024, the applicant filed an updated resolution plan, and on March 19, 2024, they filed an addendum.

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The Tribunal noted that the CoC had approved the plan with a 100% majority after considering concerns regarding compliance and inter-se distribution. The Tribunal held that the Resolution Plan complied with the relevant provisions of the Code and CIRP Regulations.

The Resolution Plan will be implemented and overseen by the RP and the CoC in accordance with Section 30(2)(d) of the Code.  The Tribunal permitted ACME Cleantech Solutions to replace MKU Holdings in the implementation of the resolution plan. 

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While allowing the appeal, the tribunal held that Section 29A of the Code was not violated and the Resolution Plan complied with the requirements of Section 30(2) of the Code and Regulations 37, 38, 38 (1A), and 39 (4) of the Regulations. 

To Read the full text of the Order CLICK HERE

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