Full Settlement: NCLT Approves Resolution Plan with 100% Voting Share from Creditors [Read Order]

The Mumbai Bench of the National Company Law Tribunal (NCLT) has approved a resolution plan, bringing the corporate insolvency resolution process to a close after it received unanimous approval from the committee of creditors.

The order relates to Latakisan Construction Private Limited, in respect of which an application was filed by the Resolution Professional seeking approval of the resolution plan under Section 31 of the Insolvency and Bankruptcy Code, 2016. The resolution plan had been approved with 100 per cent voting share at the 12th meeting of the committee of creditors held in November 2024.

The corporate insolvency resolution process was initiated pursuant to an order passed in June 2023. Following the commencement of proceedings, a public announcement was issued inviting claims from creditors. Only one financial creditor submitted its claim, and no claims were received from operational creditors, employees, workmen, or government and statutory authorities, resulting in the constitution of the committee of creditors with a single member holding the entire voting share.

During the course of the insolvency process, multiple rounds of invitations for expressions of interest were issued. As no resolution plan was received within the stipulated timelines, extensions were granted and interim proceedings arose before the appellate tribunal.

Eventually, a resolution plan was submitted within the extended period and got approved unanimously after evaluating its feasibility and viability.

The Tribunal, comprising Prabhat Kumar (Technical Member) and Sushil Mahadeorao Kochey (Judicial Member) observed that the resolution plan satisfied the requirements of Section 30(2) of the Insolvency and Bankruptcy Code and the applicable CIRP Regulations. Relying on settled judicial precedents, the bench reiterated that once a resolution plan is approved by the requisite majority of the committee of creditors, the adjudicating authority’s jurisdiction is limited to examining statutory compliance.

While granting approval, the tribunal clarified that statutory obligations under applicable laws would continue to be governed by the respective authorities and any reliefs or concessions sought under the resolution plan would be subject to law.

Accordingly, the resolution plan was approved and declared binding on all stakeholders, and the moratorium imposed under Section 14 of the Code was lifted with immediate effect.