Punjab National Bank International Limited vs M/s MBL (MP) Toll Road Company Limited

PER: RAVINDRA CHATURVEDI, MEMBER (TECHNICAL)

The present interlocutory application bearing IA (IBC) (Plan) No. 50/2025 was filed on 05.08.2025 by Mr. Piyush Moona Resolution Professional (RP) of M/s MBL (MP) Toll Road Company Limited, the Corporate Debtor (CD) under the provisions of Sections 30(6) and section 31 of the Insolvency & Bankruptcy Code, 2016 (the Code or IBC) read with Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (CIRP Regulations) for approval of the Resolution Plan submitted by M/s MBL Infrastructures Limited, the Successful Resolution Applicant (SRA), as approved by the Committee of Creditors (CoC) with 100% vote. The prayers made in the Application are as follows:

The Corporate Debtor is a company incorporated on 31.10.2011, having registered office at Baani Corporate One Tower, Suite No. 303, 3rd Floor, Plot No. 5, District Commercial Centre, Jasola, South Delhi, New Delhi, India, 110076. The CD is a special purpose vehicle (SPV) incorporated as a wholly owned subsidiary of MBL Infrastructures Limited, with the sole purpose of undertaking the construction, maintenance, and operation of the Waraseoni-Lalbarra section of the major district road (MDR) in the State of Madhya Pradesh. The CD is registered and classified as a Micro, Small, and Medium Enterprise (“MSME”) under the provisions of the Micro, Small, and Medium Enterprises Development Act, 2006 1.2. The underlying Company Petition CP (IB)-423(PB)/2023 was filed by Punjab National Bank International Limited (Financial Creditor / PNBIL), against CD under Section 7 of the Code for initiation of Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor. The Application was admitted by this Adjudicating Authority vide order dated 21.01.2025 (Admission Order) and Mr. Piyush Moona was appointed as the Interim Resolution Professional (IRP) who was later confirmed as Resolution Professional in the 1^st COC meeting convened on 20.02.2025 and vide order dated 04.03.2025 of this Adjudicating Authority in IA-1069/2025.

The IRP made a public announcement in Form A on 24.01.2025 in Financial Express (English) – Delhi NCR edition, Jansatta (Hindi) newspaper - Delhi NCR edition, Hitavada (English) – Jabalpur and Haribhoomi (Hindi) – Jabalpur edition, calling upon creditors of the Corporate Debtor to submit their claims along with the proof on or before 04.02.2025.

The following were the claims filed and admitted by the RP:

It has been submitted that the claim submitted by the Income Tax Department is disputed, as the underlying demand had already been challenged before the Appellate Authority prior to the commencement of the CIRP.

Accordingly, CoC was constituted on 13.02.2025 with the following composition:

Subsequently, Report of constitution of CoC vide IA-951/2025 filed was taken on record by this Adjudicating Authority vide order dated 25.02.2025.

The RP has submitted that total 9 (Nine) meetings have been held during the CIRP period, which are as follows:

Registered Valuers, namely Fidem Corporate Advisors LLP and GTech Valuers Private Limited were appointed, as resolved on 25.02.2025. It has been submitted that the COC has considered the Resolution Plan, keeping in view the Valuation Reports submitted by the Registered Valuers, named above. The summary of the Fair Value and Liquidation Value of the Corporate Debtor are as under:

Copy of the Valuation Reports has been annexed with the Application for approval of Resolution Plan as Annexure A-11 and 12.

Valuation of the Corporate Debtor, as further provided in Form H, is as follows:

The RP filed status report during CIRP vide IA No. 1540/2025, and the same was taken record by this AA vide order dated 07.04.2025. 2.10 It has been submitted that the suspended management/ promoter of CD had filed an appeal before Hon'ble NCLAT vide Company Appeal (AT) (Insolvency) No. 459 of 2025 against the admission order dated 21.01.2025 passed by this Adjudicating Authority. However, the Ld. Senior counsel appearing for the Applicant submitted during course of hearing on 20.08.2025 that the Appeal has been withdrawn and the same is recorded by the Hon'ble NCLAT in the order dated 19.08.2025. Further, particulars of withdrawal of the appeal have been furnished by the RP vide affidavit dated 20.08.2025. The order dated 19.08.2025 recorded by the Hon'ble NCLAT is extracted herein below:

The Applicant submits that in terms of regulation 36A(1) of the CIRP Regulations, 2016 read with section 25(2)(h) of the Code, invitation in Form G for Expressions of Interest (EoI) from Prospective Resolution Applicants (PRAs) was published on 20.03.2025, with the last date for submission of EoI being 04.04.2025 and for submission of Resolution Plan being 03.06.2025. Pursuant to the same 7 (Seven) EOIs were received.

The RP issued a provisional list of PRAs on 14.04.2025 and uploaded the same on the website of the CD.

The RP shared the Information Memorandum (IM) with the CoC vide email dated 23.04.2025.

Final List of those 7 (seven) PRAs was issued to the CoC and uploaded on the website of the CD on 29.04.2025. The final list of PRAs is extracted herein below:

In terms of Regulation 36B of CIRP Regulations 2016, the RP had issued Request for Resolution Plan (RFRP), IM, and Evaluation Matrix to all eligible Applicants in the provisional list.

The RFRP was modified in the 4^th CoC meeting convened on 14.05.2025 and accordingly last date for the submission of Resolution Plan was extended upto 16.06.2025. Revised RFRP was shared with all PRAs on 16.05.2025. Further, in the 5^th CoC meeting convened on 18.06.2025, extension of last date for the submission of Resolution Plan, on request of certain PRAs was discussed. It has been submitted that one PRA undertook to participate in the process by duly remitting EMD to the tune of INR 50,00,000/- (Rupees Fifty Lacs only) within stipulated time frame of 16^th June 2025. Accordingly, the last date for submission of the Resolution Plan was extended by 7 days i.e., from 16.06.2025 till 23.06.2025. 3.7 Following Three (3) Resolution Applicants (RAs) submitted their Resolution Plan by the extended timeline for the submission of Resolution Plan:

In the 6^th CoC meeting convened on 26.06.2025, the representatives of Resolution Applicants presented their respective resolution plans. It was observed by the sole member of the CoC that proposals currently on record neither adequately reflect the enterprise value of the Corporate Debtor nor meet the commercial expectations. Hence, CoC decided to give an opportunity to all RAs to revisit and revise only the financial proposals, with a view to enhancing the commercial viability of the plans and ensuring alignment with the overarching goal of value maximization and equitable treatment of stakeholders, as envisaged under the IBC. Pursuant to the same, CoC requested the RP to seek revised financial proposals from all RAs, granting a period of one week for submission. Accordingly, the RP informed all RAs to submit their revised financial proposals.

That MBL Infrastructure Limited via email dated 28th June 2025, informed the RP that they had opted not to further revise their financial proposal and requested that their original proposal be considered as final. Anirudh Agro Farms Limited via an email dated 2nd July 2025, submitted their revised financial Proposal. While M/s Shanti G.D. Ispat & Power Private Limited, after seeking an extension for submission of revised financial proposal sought to withdraw from the CIRP and requested a refund of the Earnest Money Deposit (“EMD”) via email dated 03rd July 2025.

In the 7th CoC meeting convened on 03.07.2025 after consideration on financial proposal from MBL Infrastructure Limited and revised financial proposal from Anirudh Agro Farms Limited, CoC decided to give one more opportunity to RAs to revise their financial proposal within next 48 hours, for further value maximization. Upon receipt of revised offer, considering significant gaps between resolution plans submitted by these two RAs, the CoC decided that Swiss challenge mechanism need not be resorted to.

MBL Infrastructure furnished an addendum/corrigendum to the Resolution Plan vide letter dated 05.07.2025 and 09.07.2025, which contained certain clarifications and amendments to the resolution plan to the extent provided therein for the purpose of compliance.

That an E-mail dated 7th July 2025 was received from M/s Shanti G.D. Ispat & Power Limited requesting to ignore their earlier mail on withdrawal of plan and requested RP to consider the plan as submitted by them in accordance with the RFRP. Subsequently, it submitted a revised Resolution Plan via email dated 08th July 2025; however, the same was beyond the stipulated timeline.

In the 8th COC meeting convened on 09.07.2025, RP informed the CoC that he had received revised financial proposal and addendum from 2 RAs namely MBL Infrastructure Limited and Anirudh Agro Limited vide email dated 5th July 2025. It has been submitted that both these resolution plans were found to be in compliance with Section 30 and Regulation 38. Further, since the revised plan of M/s Shanti G.D. Ispat & Power Limited was submitted only after due date, CoC decided to proceed with its original plan submitted on 23rd June 2025, which was found to be non-compliant. Hence, the original resolution plan submitted by M/s Shanti G.D. Ispat & Power Limited on 23.06.2025 was not put to a vote.

CoC carried out detailed deliberation on the feasibility and viability of resolution plans submitted by RAs.

That RP apprised the CoC that the Resolution Applicants have committed to effecting payment within 30 days and have demonstrated adequate net worth and requisite safeguards to ensure effective implementation. The CoC concurred with the RP's assessment and recorded that both plans contain provisions to ensure their successful implementation.

That the RP presented to the CoC the Evaluation Matrix scores for the Quantitative Parameters, as computed in accordance with the methodology prescribed in the RFRP and based on the respective values offered under the Resolution Plans submitted by the two Resolution Applicants. The scores for the Qualitative Parameters were subsequently finalized in consultation with the CoC.

The value of compliant resolution plans submitted by RAs as submitted originally and post revision, are as follows for voting:

(Amount in Rs. crores)

The voting on Resolution Plans commenced on 10.07.2025 with the last date for voting being 16.07.2025. The voting underway was scrapped by the RP due to certain clarifications sought by the sole member of the CoC.

The voting subsequently commenced on 16.07.2025 with the last date being 23.07.2025, which was extended upto 24.07.2025 on request. On 24.07.2025, the voting stood concluded with Resolution Plan of M/s MBL Infrastructure Limited receiving requisite vote. On 25.07.2025, M/s MBL Infrastructure Limited was declared as the Successful Resolution Applicant and was issued a letter of intent by the RP. The same day, i.e., on 25.07.2025, M/s MBL Infrastructure Limited furnished a performance security.

The Resolution passed in the eighth CoC meeting for approval of the Resolution Plan of M/s MBL Infrastructures Limited is extracted herein below:

The said resolution was put for voting and was APPROVED by 100% voting in its favor.

In the meanwhile, since CIRP period of 180 days was expiring on 19.07.2025, the CoC in its 9^th CoC meeting convened on 15.07.2025 resolved to seek an extension for 90 days with effect from 20.07.2025. Pursuant to the same, an application bearing 3554/2025 was filed and the same was allowed by this AA vide order dated 23.07.2025.

This Application for the approval of the resolution plan of M/s MBL Infrastructure Limited has been filed on 05.08.2025.

The Applicant has submitted that due diligence with respect to eligibility in accordance with Section 29A has been conducted. Due Diligence report issued by a third-party agency namely, DGA IB Resolution LLP has been placed on record as Annexure A-14. Further, RP's compliance certificate under section 29A in respect of the SRA has been placed on record as Annexure A-15.

Further, RP has issued a compliance certificate dated 09.07.2025 to the CoC with respect to compliance of the Resolution Plan with mandatory requirements and the same has been placed on record as Annexure A-16 of the plan application.

The Applicant has submitted that the value of Plan is INR 9,11,00,000/- (Rupees Nine Crores and Eleven Lacs) plus CIRP cost as approved by the CoC. Further, as per addendum dated 05.07.2025 to the Resolution Plan and also an affidavit dated 20.08.2025 furnished by RP that in addition to the aforesaid payment under the Resolution Plan, in accordance with the terms and conditions set out in Clause XI at page 55 of the RFRP the cash and bank balance, FDR along with revenue accruals (including annuities due during the CIRP Period but not yet received) net of the CIRP expenses as recorded in the books of the Corporate debtor as of 30th June 2025 are to be distributed among the creditors in accordance with the waterfall mechanism outlined in section 53 of the IBC. That cash, bank and FDR balances as on 30th June 2025, lying in the books of the Corporate Debtor, stood at Rs.10.06 Crore (Rupees Ten Crores & Six Lakhs Only). That after adjustment of expenses and revenue accruals till 30th June 2025 and EMD amount lying in Corporate Debtor's Books as on 30th June 2025 amounting to Rs.1.70 Crores (Rupees One Crore & Seventy Lakhs Only), the amount available for distribution to the creditors in accordance with the waterfall mechanism under Section 53 of the IBC stands at approximately Rs.8.38 Crores (Rupees Eight Crore & Thirty-Eight Lakhs Only). The amount of Rs.8.38 Crores (Rupees Eight Crore & Thirty-Eight Lakhs Only) payable to the creditors in terms of RFRP as said, is over and above the amount of INR 9.11 crores proposed in the Resolution Plan for payment to the creditors. Thus, the total amount being paid to the creditor is INR 17,49,00,000/- (Rupees Seventeen Crores and Forty-Nine Lacs only), as tabulated below for easy reference:

The Applicant has submitted that, as stated in the addendum/corrigendum dated 05.07.2025, the creditor – PNBIL, upon receipt of aforesaid payment as envisaged in the Resolution Plan will not pursue any claim against the CD and MBL Infrastructures Limited (the SRA), who is the guarantor in respect of loan given by PNBIL to the CD. 3.27 The value proposed under the Resolution Plan submitted by the SRA exceeds both the average fair value and the average liquidation value of the Corporate Debtor, thereby making the plan financially viable and commercially justifiable.

The SRA has deposited a performance security of INR 2 crores towards the performance Guarantee in 3 tranches:

As per clause 7 of the RFRP, the Performance Security shall remain valid until 100% of the contribution is made by the SRA in accordance with the Resolution Plan. The amount of the performance security will be adjusted with the amount of the last installment payable as per the terms of the resolution plan.

The SRA is a public listed company, incorporated on 25.08.1995 under Companies Act 1956 listed on BSE and NSE, having registered office at Baani Corporate One Tower Suite # 308, 3^rd floor, Plot No. 5, Jasola, South Delhi, New Delhi, India 110025 is engaged in the business of execution of civil engineering infrastructure projects; Roads & Highways (EPC, Construction, BOT, O&M), Building, Housing & Urban Infrastructure, Railways/ Metro and Other Infrastructure. 4.2 The resolution plan dated 14.06.2025, to be read with addendum/corrigendum dated 05.07.2025 and 09.07.2025, submitted by MBL Infrastructures Limited has been approved by the CoC with 100% vote in favour. 4.3 The SRA in the plan has ascertained the cause of default, which is stated as follows:

a. Due to delay in handing over Right of Way by MPRDC, tree cutting permissions, utility shifting approvals etc., there was delay in Completion of the project leading to higher Costs and increase in overall Project Cost.

b. Foreign currency fluctuation losses. Against Rs. 41,29,60,341 received in the Escrow Account from PNBIL, and applicable interest of Rs.18,45,17,520.06 totalling Rs.59,74,77,861.06, PNBIL has already recovered Rs.61,47,14,978.

c. Levy of penalties/forfeiture of annuities by MPRDC.

d. Delaying deposit of semi annuities by MPRDC in the Escrow Account.

e. User fees (toll) are much less than estimate.

The SRA proposes to address the causes of default with the following measures:

a. The Construction Risk is already over.

b. Secured Financial Creditor are being settled in terms as aforesaid in full and final settlement. Hence, there will be no outgo towards interest in future.

c. There will be no future foreign currency risk.

d. After full and final settlement as aforesaid, the future semi annuities and user fee (toll) will be used to ensure running of the Corporate Debtor as a going concern with proper cash flows.

e. The Resolution Applicant will infuse adequate finds in the Corporate Debtor and shall make necessary arrangement to keep the Corporate Debtor as a going concern.

f. The Resolution Applicant brings in 3 decades of experience and a capable team to operate the Corporate Debtor.

g. More professionals will be inducted to optimise operations,

Total value of Financial Proposal stands to the tune of INR 17,49,00,000/- (Rupees Seventeen Crores and Forty-Nine Lacs only) plus CIRP Cost at actuals and approved by the CoC.

The SRA has undertaken to pay the above amount to the sole financial creditor within 30 days from the effective date i.e., date of approval of the Resolution Plan by this AA.

Source of Fund for the payment of INR 9.11 crores is mentioned as Internal Accruals / Existing Cash Balance of Resolution Applicant / Fund Raised by Resolution Applicant via Contribution by Promoters of Resolution Applicant or through Shareholders. The Resolution Applicant is listed on BSE & NSE, since 2010 and it has the capability to raise/mobilise funds. While another payment of INR 8.38 crores is being paid out of the account of the CD lying as on 30.06.2025, after making payments as to expenses of CIRP and other payments, as clarified in affidavit dated 20.08.2025.

The other claimants being the Income Tax Department and SRA itself is being paid nil amount as the liquidation value is not sufficient to pay the dues of the sole secured financial creditor i.e., PNBIL. As per the information memorandum, no claim has been filed by workmen and employees or any other creditor except SRA and the Income Tax Department.

Further, qua capital expenditure, it has been proposed under Paragraph 4.19 of the resolution plan that the SRA will arrange for funds as may be required for working capital and expenditure requirements of the CD.

Resolution Plan provides that the SRA shall have the exclusive right on all the receivables / Arbitration proceedings of the CD.

The Applicant has filed a Compliance Certificate in the prescribed form i.e., Form H, along with the Resolution Plan, in compliance with regulation 39(4) of the CIRP Regulations, 2016 and the same has been annexed to Plan application as ANNEXURE A-24.

Details of various compliances as envisaged under section 30 of the Code and Regulation 37 and 38 of the CIRP Regulations 2016, are reproduced hereunder:

implementation of the Resolution Plan, shall be obtained within 1 year from the effective of the Resolution Plan. (e) The Resolution Applicant has funds to infuse as per the Resolution Plan. The Resolution Applicant is listed on BSE and NSE since 2010 and has capability to mobilise funds. The Resolution Applicant has vast experience of running similar projects. The Resolution Applicant has both technical and financial capabilities to implement the Resolution Plan. (Clause 4.9 under section D of the Resolution Plan)

No Application for adjudication of Preferential, Undervalued, Fraudulent, and Extortionate Transactions has been filed so far by the RP. Nevertheless, it is proposed in the Plan that proceedings, if any, in respect of avoidance transactions will be pursued after approval of the Resolution Plan.

RP has declared that he has examined the Resolution Plan received from Resolution Applicant M/s MBL Infrastructure Limited in respect of mandatory requirements, and the relevant part of the certificate is extracted below:

RP has further provided with the checklist of mandatory compliance which is extracted below:

Details of the Realizable Amount is as follows:

This AA after perusal of the Resolution Plan sought certain clarifications w.r.t the plan value, fee payable to the IBBI, valuations etc. in the course of hearing held on 10.09.2025. The same were collectively addressed by the Ld. Counsel, Sumant Batra, for RP, along with the RP in person; and Senior Counsel, P. Nagesh, appearing for the SRA. The clarifications so addressed are summarised below:

A. The Resolution Plan Value is INR 17.49 plus CIRP cost at actuals. INR 17.49 crores will be paid to the Financial Creditor – PNBIL out of which, INR 9.11 crores is being paid by the SRA contribution from its own account while remaining amount to the tune of INR 8.38 crores is being paid out of the account of the CD other than CIRP cost at actuals; B. As per the regulation 31A (1) of the code, IBBI Fee @ 0.25% on the realisable value/ Resolution Plan value of INR 17.49 crores plus CIRP Cost at actuals, is payable to the credit of IBBI; C. Further, the Information Memorandum states that the CD is not compliant with the ESIC Regulations, however the same has not been dealt with in the Resolution plan. On this Ld. Senior Counsel for SRA, in the course of hearing has submitted and undertakes on behalf of the SRA that if any claims arise in future on account of obligations of the CD under ESIC Regulations, the same shall be honoured by the SRA in accordance with the laws, as and when directed by the appropriate authority; D. Further, RP appearing in person has confirmed that he has complied with regulation 6A of the IBBI (Resolution Process of Corporate Persons) Regulations 2016 that he has sent a communication along with a copy of public announcement made under regulation 6, to all the creditors as per the last available books of accounts of the corporate debtor through post or electronic means wherever the information for communication is available; E. The RP has confirmed that only after verifying the valuation reports, he has put forth the same before the CoC. Further, CoC has deliberated upon the valuation reports for the CD in its 6th meeting convened on 26.06.2025. Relevant extract of the minutes w.r.t discussion on valuation is extracted below:

This makes it clear that the RP has satisfied himself with the content of the Valuation Reports, and the sole financial creditor has taken cognisance of the same and is deemed to have acknowledged and accepted in its commercial wisdom. This AA has a limited jurisdiction while considering the Resolution Plan for approval. Since receipt of valuation reports is duly recorded in the minutes of 6^th CoC meeting as extracted above, CoC comprising of sole financial creditor – PNBIL is deemed to be satisfied with the same on technical aspects. Hence, we refrain from commenting on the merits of the valuation reports;

It has been submitted that RP has perused the Resolution Plan and found the same is in compliance with the provisions of the IBC and CIRP Regulations. RP has provided necessary details with respect to compliance under these provisions in Form H (Annexure A-24). Further, satisfaction as to compliance with section 30 of the Code, regulation 37, 38 and 39 of the CIRP Regulations have been recorded above in paragraphs 5 and 7 above.

As per the Information Memorandum, only claim has been received from the PNBIL, MBL Infrastructures (the SRA) and Income Tax Department. This Adjudicating Authority is not commenting upon any liability, workmen and employee dues, including PF / ESIC and any other statutory dues, which if arise in future, shall be dealt with by the SRA in accordance with the laws for the time being in force.

We note that no objection has been raised against the proposed Resolution Plan and the same has been approved by the CoC comprising of sole secured Financial Creditor with 100% votes in favour of the Resolution Plan.

We observe that the Resolution Plan is in accordance with Sections 30 and 31 of the IBC and also complies with regulations 37, 38 and 39 of the CIRP Regulations, 2016.

We note at this stage that in terms of the judgment of Hon'ble Supreme Court in the case of Committee of Creditors of Essar Steel India Limited Through Authorised Signatory vs. Satish Kumar Gupta & Ors. [Civil Appeal No. 8766-67 of 2019], it is the subject matter of commercial wisdom of CoC to take decision regarding the amount of bid offered by SRA and the scope for this Tribunal to interfere on such issues is negligible. The above view was also reiterated by Hon'ble Supreme Court in Ebix Singapore Private Limited vs. Committee of Creditors of Educomp Solutions Limited & Anr. (Civil Appeal No. 3224 of 2020) wherein the Hon'ble Supreme Court ruled that the scope of examination of the application for approval of Resolution Plan by this Tribunal is confined to the provisions of Section 30(2) of IBC, 2016. Para 153 of the Judgment reads thus: -

Further, we rely upon the Judgement passed by Hon’ble Supreme Court in the matter of “Vallal RCK versus M/s Siva Industries and Holdings Limited and Others, Civil Appeal Nos. 1811-1812 of 2022” whereby the Hon’ble Apex Court has answered the question as to whether ‘the adjudicating authority (NCLT) or the appellate authority (NCLAT) can sit in an appeal over the commercial wisdom of the Committee of Creditors (hereinafter referred to as the “CoC”) or not. We rely upon the following paragraphs:

Additionally, Hon’ble Supreme Court, in their judgment dated 01.04.2024 passed in Piramal Capital and Housing Finance Limited (Formerly known as Dewan Housing Finance Corporation Limited) Vs 63 Moons Technologies Limited & Ors., Civil Appeal Nos. 1632-1634 Of 2022 has examined the issue of scope of Judicial Review in the matter of approval of Resolution Plan. After analysing all the aforementioned judgments and other judgments, Hon’ble Supreme Court has stated as under:

Thus, from the judgments cited and the statutory framework of the Insolvency and Bankruptcy Code 2016, it is evident that the scope of judicial review available to this Adjudicating Authority under section 30(2) read with section 31 is limited to assessing the compliance of the Resolution Plan with the prescribed legal requirements. The Authority is neither empowered nor obligated to delve into or evaluate the commercial wisdom of the CoC, which is paramount and binding, provided it aligns with the provision of the Code. Upon satisfaction that the proposed resolution plan adheres to the statutory mandates, including equitable treatment of stakeholders and compliance with applicable laws, this bench finds no impediment to granting its approval.

The Resolution Plan of M/s MBL Infrastructure Limited for the Corporate Debtor has been approved by CoC with 100 % majority and this Adjudicating Authority cannot interfere in the same.

The applicant has prayed for number of waivers, reliefs and concessions in the Resolution Plan. As to the relief and concessions sought in the resolution plan, by taking into consideration the decision of the Hon’ble Supreme Court in the matter of Embassy Property Development Private Limited v. State of Karnataka & Ors. in Civil Appeal No. 9170 of 2019, we direct the Successful Resolution Applicant to file necessary application before the necessary forum/authority in order to avail the necessary relief and concessions, in accordance with respective laws. The relevant part of the judgement is reproduced herein below:

Given the above, reliefs and concessions which fall in the jurisdiction of different Government Authorities, and/ or are subjected to the provisions of different laws for the time being in force are concerned, it is made clear that the amount payable by the SRA in terms of the plan to different creditors, stakeholders, and to keep the Corporate Debtor as a going concern cannot be subject to any condition, assumptions, relief/ concessions and/ or qualification. It also needs to be underlined that the provisions of Section 31(4) of IBC, 2016 mandates the Resolution Applicant to obtain the necessary approval required under any law for the time being in force within a period of one year from the date of approval of the resolution plan by the Adjudicating Authority under Section 31 of the IBC, 2016. In terms of the provisions of Section 14 of the Code even during the period of CIRP, no default in payment of current dues is a precondition for continuation of the License, Permit, Registration and similar rights. Thus, even during the moratorium period, some of the facilities forming part of the reliefs and concessions sought are made available to the CD only when there is no default in payment of the current dues. On approval of the Resolution Plan, the SRA/CD cannot be put on a better footing by exempting it from paying its legitimate dues under the law.

The SRA/CD will be entitled to no other reliefs/ concessions/waivers except those are available/permissible to it as per the provisions of IBC, 2016. The SRA is at liberty to approach the relevant authorities, who would consider these claims as per the provisions of the relevant law in an expeditious manner.

Thus, it is ordered that the reliefs, concessions and waivers sought by the Successful Resolution Applicant will be dealt with strictly as per the law and shall not be deemed to be granted only by virtue of this plan approval order.

As far as the question of granting time to comply with the statutory obligations / seeking sanctions from governmental authorities is concerned, the Resolution Applicant is directed to do the same within one year as prescribed under section 31(4) of the Code. In case of non-compliance of this order or withdrawal of the Resolution Plan within the stipulated time, in addition to other consequences which follow under law, the CoC shall forfeit the performance security paid by the SRA.

Therefore, in our considered view, there is no impediment to giving approval to the instant Resolution Plan. Accordingly, we hereby approve the Resolution Plan, which shall be binding on the Corporate Debtor, Financial Creditor, and all other stakeholders involved.

Subject to the observations made in this Order, the Resolution Plan submitted by M/s MBL Infrastructure Limited for a value of INR 17,49,00,000/- (Rupees Seventeen Crores and Forty-Nine Lacs only) plus CIRP Cost at actuals, is hereby approved.

IA (IBC) (Plan) No. 50/2025 filed for approval of the Resolution Plan stands allowed.

The approved Resolution Plan shall become effective from the date of this Order and shall be implemented strictly as per the term of the plan and implementation schedule given in the Plan;

The following steps shall be taken in terms of the Resolution Plan:

The Resolution Plan is binding on the Corporate Debtor and other stakeholders involved so that the revival of the Corporate Debtor shall come into force with immediate effect. 9.6 The Moratorium imposed under section 14 of the Code shall cease to have effect from the date of this order. 9.7 No Relief or waiver as sought in the Resolution Plan shall be deemed to be granted, unless the same is specifically granted herein under this order or the SRA is otherwise entitled to in accordance with the applicable provisions of the IBC 2016. 9.8 The Resolution Professional shall submit the records collected during the commencement of the proceedings to the Insolvency & Bankruptcy Board of India for their record and also return to the Resolution Applicant or New Promoters.

The liberty is hereby granted for moving any appropriate application, if required in connection with the implementation of this Resolution Plan.

A Certified copy of this Order shall be filed by the Resolution Professional with the Registrar of Companies, NCT of Delhi & Haryana. 9.11 The Resolution Professional shall stand discharged from his duties with effect from the date of this Order, save and except those duties that are enjoined upon him for implementation of the approved Resolution Plan. 9.12 The Resolution Professional is further directed to hand over all the records, premises/factories/documents available with it to the Successful Resolution Applicant to finalise the further line of action required for starting of the operation. The Successful Resolution Applicant shall have access to all the records, premises/factories/documents through the Resolution Professional to finalise the further course of action required for starting of operations of the Corporate Debtor. 9.13 The Monitoring Committee shall file periodical progress report regarding implementation of the Plan before this Tribunal until completion. 9.14 The Registry is hereby directed to send e-mail copies of the order forthwith to all the parties; CoC, RP and SRA and their Ld. Counsels for information and for taking necessary steps. The Applicant – RP is directed to send a copy of this order to the IBBI and RoC concerned for their record. 9.15 Certified copy of this order may be issued, if applied for, upon compliance of all requisite formalities.

- a. Accordingly, prayers a) to c) in IA(Plan)-50/2025 filed for seeking approval of resolution plan are allowed and as regard prayer d) the same shall be dealt strictly as per law. The I.A.(Plan) 50/2025 is disposed of in above terms. - b. File be consigned to record storage (current).