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Judgment
O R D E R
The present Application is filed by the Resolution Professional i.e.
the Applicant herein (hereinafter referred to as the "Resolution Professional" or the "Applicant") of M/s. Meenesh Irrigation India Private LImited (Corporate Debtor), under Sections 30(6) and 31 read with Regulation 38 and 39 of IBBI (CIRP) Regulations 2016, seeking approval of Adjudicating Authority under section 31 of the IBBI, 2016, on the Resolution Plan submitted by M/s Priya Machines through its proprietor Mr. Osaf Iqbal Khan (Successful Resolution Applicant/SRA), as approved by the Committee of Creditors (COC) with 89.20% of voting share.
AVERMENTS IN THE APPLICATION IN BRIEF:
Initiation of CIRP:
It is stated that the Corporate Insolvency Resolution Process (“CIRP”) in respect of the Corporate Debtor was initiated vide order of this Adjudicating Authority dated 22.01.2025 in C.P. (IB) No. 43/IND/2023 under section 10 of IBC, 2016. Pursuant thereto, the Applicant was appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional in the 1st meeting of the CoC held on 18.02.2025.
Public Announcement:
The Public Announcement was made on 24.01.2025 inviting claims. Based on the claims received by the applicant, the Committee of Creditors (COC) was formed on 11.02.2025. The claims of the Creditors are as under:
Financial Creditors: (Amount in Rs., Lakhs)
| Sr. No. | Financial Creditor | Amount Claimed | Amount Admitted | Voting % | Voting for Resolution Plan |
| 1. | Madhya Pradesh Financial Corporation Ltd. | 670.83 | 670.83 | 89.20 | Votes in favour |
| 2. | IDBI Bank | 88.42 | 81.18 | 10.80 | Abstained |
Operational Creditor: (Amount in Rs., Lakhs)
| Sr. No. | Operational Creditor | Amount Claimed | Amount Admitted |
| 1. | 10 – Operational Creditor – General | 189.22 | 85.20 |
| 2. | Operational Creditor – Related Party | 98.38 | -- |
Constitution of CoC:
The Committee of Creditors (CoC) was constituted on 11.02.2025 and the report of constitution of committee of creditors was filed with this Tribunal.
1st CoC Meeting:
The first meeting of the CoC was conducted on 18.02.2025 after due notice. The CoC resolved to confirm Mr. Amresh Shukla as the Resolution Professional.
Valuation:
IBBI-registered valuers were appointed on 10.03.2025 for valuation of Securities or Financial Assets, Land & Buildings and Plant and Machinery as under:
| NCLT INDORE BENCH I.A. (Plan) No. 4 of 2025 in CP(IB) No. 43 of 2023 Amresh Shukla RP of M/s Meenesh Irrigation India Pvt. Ltd. Order Date: 12.12.2025 | |||||||
| Particulars | Fair Value | Liquidation Value | |||||
| Valuer 1 | Valuer 2 | Average | Valuer 1 | Valuer 2 | Average | ||
Land and Building | 2,20,58,000 | 5,10,00,000 | 3,65,29,000 | 1,76,46,400 | 4,08,00,000 | 2,92,23,200 | |
Plant and Machinery | 6,00,749 | 6,55,502 | 6,28,125.50 | 4,80,599 | 5,24,400 | 5,02,49,9.50 | |
| Securities and Financial Assets | 9,09,000 | 9,31,358 | 9,20,179 | 9,09,000 | 9,31,358 | 9,20,179 | |
| Total | 2,35,67,749 | 5,25,86,860 | 3,80,77,307.50 | 1,90,35,999 | 4,22,55,758 | 3,06,45,878.50 | |
Expression of Interest (EOI):
EOI in Form G was published on 06.05.2025 in Raj Express (Hindi Newspaper), and Times of India (English Newspaper) (Annexure - C) and the last date for receipt of EOI was 07.07.2025.
Receipt of Resolution Plans:
One M/s Priya Machines through its Proprietor Mr. Osaf Iqbal Khan submitted the Resolution Plan on 05.07.2025. The Resolution Plan was placed before the COC on 07.07.2025.
Extension of CIRP Period:
The period of 180 days prescribed under section 12 of IBC, 2016 stood expired on 21.07.2025. An application bearing I.A. No. 328 of 2025 was filed before the Tribunal seeking extension of CIRP period. The Tribunal on 21.07.2025 allowed the application and granted extension of 90 days w.e.f. 22.07.2025.
8th CoC Meeting:
The plan was discussed in the 8th COC meeting held on 11.08.2025 and 12.08.2025 and the CoC requested Resolution Applicant to submit revised plan.
Thereafter on 19.08.25 the Resolution Applicant submitted modified resolution plan enhancing the plan to Rs. 2.45 crores and CIRP cost at full. After deliberations and careful evaluation, the CoC approved the Resolution Plan submitted by M/s Priya Machines through its Proprietor Mr. Osaf Iqbal Khan with 89.20% voting share. The Resolution Plan submitted by the successful Resolution Applicant is annexed and marked as Annexure-F.
Compliance of Resolution Plan:
The Resolution Professional averred that the revised plan filed by M/s Priya Machines through its Proprietor Mr. Osaf Iqbal Khan was in conformity with Section 30(2) and Regulation 38 of the CIRP Regulations, 2016.
PERFORMANCE BANK GUARANTEE: -
The Resolution Applicant has assured to furnish Bank Guarantee of Rs. 1 Crores within 7 working days from the date of approval of the Resolution Plan by the Tribunal.
3. CONTOUR OF RESOLUTION PLAN:
M/s Priya Machines through its Proprietor Mr. Osaf Iqbal Khan, the Successful Resolution Applicant, is a proprietorship concern engaged in manufacturing of Metal Sheet Enclosure, Enclosure for Electric Panel, Fabrication & Manufacturing of Transformer Tanks upto 100MVA, Fabrication & Machining Components of track machines.
The COC comprised of two financial creditor i.e. Madhya Pradesh Financial Corporation Ltd. Having 89.20% of voting shares And IDBI Bank having 10.80% of voting shares.
The amounts provided for the stakeholders under the Resolution Plan are as under:
I. CIRP costs:
It is submitted that the unpaid CIRP costs will be paid in priority over payments to any other creditors on and from the NCLT Approval Date and within 30 days upon approval of this Resolution Plan.
II. Proposal for Secured Financial Creditors:
Sr. No. | Name of Financial Creditor | Amount Admitted (RS., Lakhs) | Settlement Amount (RS., Lakhs) | % of settlement amount |
| 1. | Madhya Pradesh Financial Corporation Ltd. | 670.83 | 218.55 | 32.57 |
| 2. | IDBI Bank | 81.18 | 26.45 | 32.57 |
| Total | 752.01 | 245 | 32.57% |
III. Proposal for Operational Creditors including Government dues, Taxes etc:
As per the information memorandum issued by the applicant/RP no claim is received from governmental authorities and thereby Resolution applicant proposes NIL consideration to government dues.
As per the Resolution Plan, the liquidation value of the Corporate Debtor is much lower than the financial outlay considered for secured financial creditor under the plan. The amount proposed to be distributed under the Resolution Plan does not cover entire outstanding/ admitted debts of Secured Financial Creditors as per section 53. Therefore, Operational Creditors as well as Dissenting Unsecured Financial Creditors has been assumed to receive NIL consideration according to Section 30(2).
IV. Proposal for Employees and Workmen:
No claims submitted for Employee and workmen dues.
(D) SOURCES OF FUNDS AND IMPLEMENTATION SCHEDULE:
The source of funds, the implementation schedule and the distribution of the Plan amount of Rs. 2.45 crores are as follows:
i. Source of funds/Implementation Schedule: -
The following data of Osaf Iqbal Khan (SRA) given for F.Y. 2023-24 has been observed from the Resolution Plan:
(Rs. In Lakhs)
| Particulars | 2023-2024 |
| Gross Revenue | 916.33 |
Profit/(Loss) before depreciation & tax | 14.83 |
| Depreciation | 9.50 |
| Profit/(Loss) before tax | 15.32 |
| Profit/(Loss) after tax | 13.29 |
| Net worth | 381.78 |
| Fixed Assets (net block) | 579.79 |
The Resolution Applicant holds a cash credit account having sanctioned limit of 1.3 crores approx. which has a credit balance of Rs. 2.76 crores as on 2/07/2025 in ICICI Bank.
The Resolution Applicant holds a cash credit account having sanctioned limit of 1.95 crores approx. which has a credit balance of Rs. 66 Lakhs as on 3/07/2025 in Kotak Mahindra Bank.
ii. Distribution of Resolution Plan amount:
Sr. No. | Financial Proposal | Amounts Payable (INR) | Timeline for the Payments |
| 1 | CIRP Cost | 25,00,000 | 30 days |
| 2. | Payment to Secured Financial Creditors in full and final settlement of dues | 1,00,00,000 | 7 days |
| 1,45,00,000 | 30 days | ||
| 3. | Payment towards workmen and employees | - | - |
| 4. | Payment towards Statutory Dues | - | - |
| 5. | Payment towards Operational Creditors (Other than Workmen and Statutory Dues) | 00 | - |
| Total | 2,70,00,000 | 30 days |
(E) TERM OF THE RESOLUTION PLAN:
The term of the Resolution Plan is 180 days from the date of approval of the resolution plan by the Adjudicating Authority.
(F) MONITORING COMMITTEE
The approved Resolution Plan provides for constitution of the Monitoring Committee consisting of Resolution Professional, two representative of the Financial Creditors and two representatives of the Resolution Applicant and Resolution Professional to oversee and monitor the implementation of the Resolution Plan from the date of approval of Resolution Plan by this Tribunal till the final payment as per the resolution plan. (Clause 6.8.1 of the Resolution Plan (page 115).
(G) Compliance of mandatory contents of Resolution Plan under the Code and Regulations.
The Applicant has conducted a thorough compliance check of the Resolution Plan in terms of the Code as well as Regulations 38 & 39 of the Insolvency and Bankruptcy Board of India (Corporate Insolvency Resolution Process) Regulations, 2016 and has filed Form ‘H’ prescribed under Regulation 39(4) of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
In the above back drop Ld. Counsel for the Resolution Professional has perused the records. He submits that the Resolution Plan meets the requirement of Section 30 (2) of the Code, as under:
| NCLT INDORE BENCH I.A. (Plan) No. 4 of 2025 in CP(IB) No. 43 of 2023 Amresh Shukla RP of M/s Meenesh Irrigation India Pvt. Ltd. Order Date: 12.12.2025 | ||
Provisions under Section 30(2) of the Code | Compliance under Resolution Plan | |
| (a) provides for the payment of insolvency resolution process costs in a manner specified by the Board in priority to the repayment of other debts of the Corporate Debtor; | Yes, provision has been made for payment of the Insolvency Resolution Process Cost of Rs. 25 Lakhs under the Resolution Plan. (Clause 5.4.2) | |
| [(b) Whether the plan provides for the payment to the Operational Creditors | The liquidation value of Corporate Debtor is lower than the financial outlay considered for secured financial creditors under this resolution plan. The amount proposed to be distributed among the secured financial creditors does not cover entire admitted claims as per section 53. Therefore, the operational creditors has been assumed to receive NIL consideration according to section 30(2)(clause 5.5.1). | |
| (c) Payment to Financial creditors who did not vote in favour of the resolution plan | IDBI Bank has abstained from voting. However, both the secured Financial Creditors are paid 32.57% of their claims. (Clause 5) | |
| (d) Management of the affairs of the Corporate Debtor after approval of the | Entire shareholding and management of the CD post approval of resolution plan will be | |
| NCLT INDORE BENCH I.A. (Plan) No. 4 of 2025 in CP(IB) No. 43 of 2023 Amresh Shukla RP of M/s Meenesh Irrigation India Pvt. Ltd. Order Date: 12.12.2025 | ||
| resolution plan | looked after by the SRA. New Board of Directors will be constituted comprising Mr. Osaf Iqbal Khan and Hudaibiya Iqbal Khan(Clause 6). | |
| (e) Provides for the implementation and supervision of the Resolution Plan | The approved Resolution Plan provides for constitution of the Monitoring Committee consisting of Resolution Professional, two representative of the Financial Creditors and two representatives of the Resolution Applicant and Resolution Professional to oversee and monitor the implementation of the Resolution Plan from the date of approval of Resolution Plan by this Tribunal till the final payment as per the resolution plan. (Clause 6.8.1) Within 30 days from the approval of resolution plan by the AA entire payment will be made to the FC and CIRP Cost.(clause 6) | |
| (f)That the plan does not contravene any of the provisions of the law for the time being in force | No, the plan does not contravene any provision of law. Resolution Applicant has given a declarative statement. (Clause 2.7) | |
Further, the Resolution Plan is in compliance of Regulation 38 of the Regulations in the following manner:
CIRP Regulatio n | Provisions of CIRP Regulations | Relevant clause / page no. of Resolution Plan document |
|---|---|---|
Regulatio n 38(1)(a) | The amount payable under the resolution plan to the operational creditors, shall be paid in priority over financial creditors. | The liquidation value of Corporate Debtor is lower than the financial outlay considered for secured financial creditors under this resolution plan. The amount proposed to be distributed among the secured financial creditors does not cover entire admitted claims as per section 53. Therefore, the operational creditors has been assumed to receive NIL consideration according to section 30(2)(clause 5.5.1). |
| NCLT INDORE BENCH I.A. (Plan) No. 4 of 2025 in CP(IB) No. 43 of 2023 Amresh Shukla RP of M/s Meenesh Irrigation India Pvt. Ltd. Order Date: 12.12.2025 | |||
Regulatio n 38(1A) | Whether the resolution plan includes a statement as to how it has dealt with interest of all stakeholders including Financial Creditors and Operational Creditors of the Corporate Debtor. | The secured financial creditors are offered 32.57% of their claims. Since, The liquidation value of Corporate Debtor is lower than the financial outlay considered for secured financial creditors under this resolution plan. The operational creditors have been assumed to receive NIL consideration. (Clause 5.5.1) | |
Regulatio n 38(1B) | Whether the Resolution Applicant or any of its related parties has failed to implement or contributed to the failure of implementation of any resolution plan approved under the Code If so, whether the Resolution Applicant has submitted the statement | The Resolution Applicant has given declaration pursuant to section 29A of the Code affirming that he is eligible to submit a resolution plan and has not committed any default. (Clause 2.7) | |
| NCLT INDORE BENCH I.A. (Plan) No. 4 of 2025 in CP(IB) No. 43 of 2023 Amresh Shukla RP of M/s Meenesh Irrigation India Pvt. Ltd. Order Date: 12.12.2025 | |||
giving details of such non- implementation. | |||
| Effective date of Resolution Plan implementation | Effective date shall be the date on which CD shall issue its equity shares to the Resolution Applicant against the upfront amount (i.e. 30 days from approval date) brought for payment to Financial Creditors. | ||
| NCLT INDORE BENCH I.A. (Plan) No. 4 of 2025 in CP(IB) No. 43 of 2023 Amresh Shukla RP of M/s Meenesh Irrigation India Pvt. Ltd. Order Date: 12.12.2025 | |||
At the outset we refer to the following judgements: -
Hon’ble Apex Court in re Sashidhar v. Indian Overseas Bank & Others (in Civil Appeal No. 10673/2018) held that
“if the CoC had approved the Resolution Plan by requisite percent of voting share, then as per Section 30 (6) of the Code, it is imperative for the Resolution Professional to submit the same to the Adjudicating Authority. On receipt of such proposal, the Adjudicating Authority (NCLT) is required to satisfy itself that the resolution plan as approved by CoC meets the requirements specified in Section 30(2). No more and no less”.
The Hon’ble Supreme Court has further held at para 35 of the above judgement that:
“the discretion of the adjudicating authority (NCLT) is circumscribed by Section 31 limited to scrutiny of the resolution plan “as approved” by the requisite percent of voting share of financial creditors. Even in that enquiry, the grounds on which the adjudicating authority can reject the resolution plan is in reference to matters specified in Section 30(2), when the resolution plan does not conform to the stated requirements.”
The Hon’ble Supreme Court in Committee of Creditors of Essar Steel India Limited Vs. Satish Kumar Gupta & Ors, held that:-
“the limited judicial review available to AA has to be within the four corners of section 30(2) of the Code. Such review can in no circumstance trespass upon a business decision of the majority of the CoC. As such the Adjudicating Authority would not have power to modify the Resolution Plan which the CoC in their commercial wisdom have approved”.
The Hon’ble Supreme Court of India, in the recent ruling in re Vallal RCK vs M/s Siva Industries and Holdings Limited & Ors, has held as under:-
“21.This Court has consistently held that the commercial wisdom of the CoC has been given paramount status without any judicial intervention for ensuring completion of the stated processes within the timelines prescribed by the IBC. It has been held that there is an intrinsic assumption, that financial creditors are fully informed about the viability of the corporate debtor and feasibility of the proposed resolution plan. They act on the basis of thorough examination of the proposed resolution plan and assessment made by their team of experts. A reference in this respect could be made to the judgments of this Court in the cases of K. Sashidhar v. Indian Overseas Bank and Others, Committee of Creditors of Essar Steel India Limited through Authorised Signatory v. Satish Kumar Gupta and Others, Maharashtra Seamless Limited v. Padmanabhan Venkatesh and Others, Kalpraj Dharamshi and Another v. Kotak Investment Advisors Limited and Another, and Jaypee Kensington Boulevard Apartments Welfare Association and Others v. NBCC (India) Limited and Others.
27.This Court has, time and again, emphasized the need for minimal judicial interference by the NCLAT and NCLT in the framework of IBC. We may refer to the recent observation of this Court made in the case of Arun Kumar Jagatramka v. Jindal Steel and Power Limited and Another:
“95.…. However, we do take this opportunity to offer a note of caution for NCLT and NCLAT, functioning as the adjudicatory authority and appellate authority under the IBC respectively, from judicially interfering in theframework envisaged under the IBC. As we have noted earlier in the judgment, the IBC was introduced in order to overhaul the insolvency and bankruptcy regime in India. As such, it is a carefully considered and well thought out piece of legislation which sought to shed away the practices of the past. The legislature has also been working hard to ensure that the efficacy of this legislation remains robust by constantly amending it based on its experience. Consequently, the need for judicial intervention or innovation from NCLT and NCLAT should be kept at its bare minimum and should not disturb the foundational principles of the IBC…..”
According to the Applicant, from the date of commencement of CIRP to till date of filing this instant application, a total of 8 COC meetings were convened.
It if further noted that the 180 days’ time limit for completion of the CIRP as per Section 12 of the Code was 21.07.2025. However, the time was extended and the date of expiry of extended period of CIRP was 19.10.2025.
The highlights of the resolution plan are as under: -
| NCLT INDORE BENCH I.A. (Plan) No. 4 of 2025 in CP(IB) No. 43 of 2023 Amresh Shukla RP of M/s Meenesh Irrigation India Pvt. Ltd. Order Date: 12.12.2025 | |||
| 1. | IA No/CP No. | IA (Plan) 04/2024 in CP (IB) No. 43/IND/2023 | |
| 2. | Date of filing of resolution plan with the Adjudicating Authority | 14.10.2025 | |
| 3. | Name of the Resolution Applicant | M/s Priya Machines through its proprietor Mr. Osaf Iqbal Khan | |
| 4. | Voting % in favour of the Resolution Plan | 89.20% | |
| 5. | Resolution Plan Amount provided by the SRA to the stakeholders | Rs.2,70,,00,000/-(including CIRP costs of Rs. 25,00,000) | |
| 6. | Total claims admitted by the RP | Rs. 7,52,01,000/- | |
| 7. | % of amount provided to the stakeholders under the Resolution Plan to the amount admitted | 32.57% | |
| 8. | Fair Value | Rs. 3,80,77,304.50 | |
| 9. | Liquidation Value | Rs. 3,06,45,878.50 | |
| 10. | Resolution Plan Value | Rs. 2,45,00,000 (Excluding the CIRP Cost of Rs. 25,00,000) | |
| 11. | Term/Implementation schedule | 180 days from the NCLT approval date. | |
| NCLT INDORE BENCH I.A. (Plan) No. 4 of 2025 in CP(IB) No. 43 of 2023 Amresh Shukla RP of M/s Meenesh Irrigation India Pvt. Ltd. Order Date: 12.12.2025 | |||
According to the Resolution Professional, the said Resolution Plan complies with all the provisions of the IBC, IBBI / CIRP Regulations and does not contravene any of the provisions of the law for the time being in force and the Successful Resolution Applicant has filed an Affidavit pursuant to Section 30 (1) of the Code, confirming its eligibility under Section 29A of the code and the Resolution Professional affirms that the contents of the said Affidavit are in order.
Therefore, the resolution plan, when tested on the touch stone of the aforesaid facts and the rulings, we are of the view that the instant resolution plan satisfies the requirements of Section 30 (2) of the Code and Regulations 37, 38, 38 (1A) and 39 (4) of the Regulations. We also find that the Resolution Applicant is eligible to submit the Resolution Plan under Section 29A of the Code.
We therefore, hereby approve the Resolution Plan submitted by M/s Priya Machines through proprietor Mr. Osaf Iqbal Khan(“Successful Resolution Applicant”) along with annexures, schedules forming part of the Resolution Plan annexed to the Application and order as under:-
The Resolution Plan proposed to offer Rs. 2,45,00,000 against the admitted debt of Rs. 7,52,01,000 crores, representing 32.57% of the total admitted debt.
The Resolution Plan along with annexures and schedules forming part of the plan shall be binding on the Corporate Debtor, its employees, members, creditors, including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force is due, guarantors and other stakeholders involved in the Resolution Plan.
All crystallized liabilities and unclaimed liabilities of the Corporate Debtor as on the date of this order shall stand extinguished on the approval of this Resolution Plan.
The approval of the Resolution Plan shall not be construed as waiver of any statutory obligations/ liabilities of the Corporate Debtor and shall be dealt with by the appropriate Authorities in accordance with law. Any waiver sought in the Resolution Plan, shall be subject to approval by the Authorities concerned as held by Hon’ble Supreme Court in the matter of Ghanashyam Mishra & Sons Private Limited Versus Edelweiss Asset Reconstruction Company Limited in CIVIL APPEAL NO.8129 OF 2019 dated 13.04.2021.
The Memorandum of Association (MoA) and Articles of Association (AoA) shall accordingly be amended and filed with the Registrar of Companies (RoC) Gwalior for information and record. The Resolution Applicant, for effective implementation of the Plan, shall obtain all necessary approvals, under any law for the time being in force, within such period as may be prescribed.
Henceforth, no creditors of the erstwhile Corporate Debtor can claim anything other than the liabilities referred to supra.
The moratorium under Section 14 of the Code shall cease to have effect from this date.
The Applicant shall forward all records relating to the conduct of the CIRP and the Resolution Plan to the IBBI along with copy of this order for information.
The Applicant shall forthwith send a copy of this order to the CoC and the Resolution Applicant.
The Registry is directed to furnish free copy to the parties as per Rule 50 of the NCLT Rules, 2016.
The Registry is directed to communicate this order to the Registrar of Companies, Gwalior for updating the master data and also forward a copy to IBBI.
The Monitoring Committee/ Resolution Professional will submit a quarterly report to the Registry till the implementation of the Plan.
Accordingly, I.A. (plan) 4 of 2025 is allowed and stands disposed off.