26th February, 2026 Approval of Resolution Plan - Newgen Ecotronics Private Limited [IA (IBC) (Plan)/12(CH)/2025 in CP(IB) No.141/Chd/Hry/2023] (445.05 KB)
NATIONAL COMPANY LAW TRIBUNAL CHANDIGARH BENCH (COURT-II), CHANDIGARH
IA (IBC) (PLAN)/12(CH)/2025 In CP(IB) No.141/Chd/Hry/2023 (Admitted)
(An application under Sections 30 (6) and 31 of the Insolvency and Bankruptcy Code, 2016 read with Regulation 39(4) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016)
In the matter of IA (IBC) (PLAN)/12(CH)/2025
Mr. Ravindra Kumar Goyal
Resolution Professional of
M/s Newgen Ecotronics Private Limited
Email: cirpnepl.rsds@gmail.com
ravindra1960_goyal@yahoo.com
Contact No: 9978094218
……Applicant
In the matter of CP(IB) No.141/Chd/Hry/2023
(An application under Section 7 of the Insolvency & Bankruptcy Code)
IN THE MATTER OF:
Madan Gopal Banga …Petitioner/Financial Creditor
vs.
Newgen Ecotronics Private Limited ...Respondent/Corporate Debtor
Order delivered on: 22.01.2026
CORAM: MR. K. BISWAL, MEMBER (JUDICIAL) MR. KAUSHALENDRA KUMAR SINGH, MEMBER (TECHNICAL)
Present:-
For the Applicant/RP
: Mr. Rajeev K. Goel along with Ms. Pragya, Advocates along with Mr. Ravindra Kumar Goyal, RP in person, present through V.C.
NCLT Chandigarh Bench In (Admitted)
Page 2 of 24
ORDER
The present Application has been filed by Mr. Ravindra Kumar Goyal, Resolution Professional (hereinafter referred to as the “RP”) under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 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 (hereinafter referred to as the “CIRP Regulations”) for seeking approval of the Resolution Plan of Kaane Packaging Private Limited (hereinafter referred to as the “Successful Resolution Applicant” or “SRA” or “RA”), which has been approved with 85.55% voting share of the Committee of Creditors (hereinafter referred to as the “COC”) in its 14th meeting dated 14.08.2025. 2. The averments made by the Applicant/Resolution Professional in the present application and as presented by the Ld. Counsel are summarized as under:- i. The Corporate Debtor is a private company incorporated on 13.12.2022 and is engaged in the manufacturing, trading, and assembling of all types of plastic products, component parts, assemblies, accessories, etc. It is an MSME and is registered as a Micro Enterprise with effect from 16.01.2023. ii. The Corporate Debtor was admitted in the Corporate Insolvency Resolution Process (CIRP) on 21.08.2024. Mr. Ravinder Kumar Goyal
In
(Admitted)
Page 3 of 24
was appointed as Interim Resolution Professional (IRP) and later
confirmed to act as a RP of the Corporate Debtor.
iii.
The Constitution of the COC and the voting share of the
respective Members has been as under:-
S. No.
Name of
Creditor
Amount
Claimed (Rs.)
Amount
Admitted
(Rs.)
Voting Share
(%)
1.
Union Bank of
India
21,99,14,000
21,99,14,000
81.57%
2.
Madan Gopal
Banga
3,88,65,933
3,88,65,933
14.42%
3.
Richcredit
Finance Private
Limited
1,08,27,609
1,08,27,609
4.02%
Total
26,96,07,542 26,96,07,542
100%
iv. As against the total claim received at Rs.29,03,77,974/-, the IRP had admitted the claim to the extent of Rs.28,48,47,172/- v. In pursuant to publication of Form G for inviting of Expression of Interest (EOI) twice on 15.12.2024 and 03.04.2025 in the course of the CIRP, two Resolution Plans of Kanne Packaging Private Limited and FTHN Healthcare Products Pvt. Ltd. were received from eligible Prospective Resolution Applicants. The CoC has approved the Resolution Plan submitted by Kaane Packaging Private Limited with 85.55% votes in its 14th Meeting on 14.08.2025. vi. The RP has filed this Application on 26.08.2025 seeking approval of the Resolution Plan.
In
(Admitted)
Page 4 of 24
vii.
The prescribed period 180 days of the CIRP had ended as on
17.02.2025 and thereafter, the period has been extended vide orders
dated 11.03.2025, 09.06.2025 and 25.07.2025 and the extended
period of the CIRP ended as on 16.08.2025.
viii.
On the basis of the Valuation Reports, the fair value and
liquidation value of the Corporate Debtor has been arrived at Rs.9.28
Crore and Rs.7.53 Crore respectively.
ix.
The Resolution Plan value amounts to Rs.8.55 Crores and the
SRA has proposed to pay the total amount to the Stakeholders within
60 days from the NCLT approval date.
x.
The Resolution Plan provides for the payment towards the CIRP
cost and to the various Stakeholders as given in the Table below:-
Particulars Amount Claimed (Rs.) Amount admitted (Rs.) Realizable amount under the Plan (Rs.) Amount realizable in plan to the admitted claim in % CIRP Cost
35,00,000 35,00,000
Financial Creditors
(i) Secured
Financial
Creditors
(Accenting)
23,00,78,609 23,00,78,609
7,25,57,000
31.54
(ii) Unsecured
Financial
Creditors
(Dissenting)
3,88,65933
3,88,65933
19,43,000
5
In
(Admitted)
Page 5 of 24
Operational Creditors (i) Government (PF)
1,71,19,236
1,71,19,236
79,86,854
53.95
(ii)
Other
Operational
Creditors
26,04,095
1,31,462
13,146
10
(iii) Other debts
and dues
17,10,101
9,66,101
Total 29,03,77,974
28,48,47,172 8,25,00,000
xi.
The RP has examined the Resolution Plan and required
compliances thereon. For ready reference, the compliance examined by
the RP are reproduced in the Table below:-
Section of the
Code/Regulatio
No.
Requirement with respect to
the Resolution Plan
Clause of the
Resolution
Plan
Complia-
nce
(Yes/No)
Section 25(2)(h)
Whether the Resolution Applicant meets
the criteria approved by the CoC having
regard to the complexity and scale of
operations of business of the CD?
Clause 1
Yes
Section 29A
Whether
the
resolution
applicant
is
eligible to submit a resolution plan as per
final list of RP or Order, if any, of the
Adjudicating Authority?
Clause 6.4.3
Yes
Section 30(1)
Whether the resolution applicant has
submitted an affidavit stating that it is
eligible?
Appendix 9
Yes
Section 30(2)
Whether the resolution plan-
(a) Provides for the payment of Insolvency
Resolution Process Cost?
(b) Provides for the payment to the operational creditors?
(c) Provides for the payment to the Financial Creditors who did not vote in favour of the resolution plan?
(d) Provides for the management of the Clause 5.3.1, 5.3.2 and 5.3.3
Clause 5.7
Clause 5.4.2, 5.5.6 and 5.6.3
Clause 7.1.2 Yes
Yes
Yes
Yes
In
(Admitted)
Page 6 of 24
affairs of the corporate debtor?
(e) Provides for the implementation and supervision of the resolution plan?
(f) does not contravene any of the provisions of the law for the time being in force?
Clause 7.1.4
Clause 10.2
Yes
Yes
Section 30(4)
Whether the resolution plan
(a) is feasible and viable, according to the
COC?
(b) has been approved by the COC with
66% voting share?
Clause 4.3,
Clause 6.4
Clause 12 and
Clause 13
Yes
Yes
Section 31(1)
Whether
the
resolution
plan
has
provisions for its effective implementation
plan, according to the COC?
Clause 1,
Clause 4.3,
Clause 4.4
and Clause
6.4
Yes
Regulation 38(1)
Whether
the
amount
due
to
the
operational creditors under the resolution
plan has been given priority in payment
over financial creditors?
Clause 5.7.3
Yes
Regulation
38(1)(a)
Whether the resolution plan includes a
statement as to how it has dealt with the
interest of all stakeholders?
Clause 9
Yes
Regulation
38(1)(b)
(i) Whether the resolution applicant or any
of its related parties
has failed to
implement or contribute to the failure of
implementation of any resolution plan
approved under the Code.
(ii) If so, whether the resolution applicant
has submitted the statement giving details
of such non-implementation?
Clause 10.1
NA Yes
Regulation 38(2)
Whether the resolution plan provides:
(a)
the
term
of
the
plan
and
its
implementation schedule?
(b) for the management and control of the business of the corporate debtor during its term?
(c) adequate means for supervising its
implementation?
Clause 5.1.2,
15.4.2, 12 and
13
Clause 7.1
Clause 8
Yes
Yes
Yes
Regulation 38(3)
Whether the resolution plan demonstrates
that
(a) it addresses the cause of default?
(b) it is feasible and viable?
(c) it has provisions for its effective
Clause 4 Clause 4.3, 6.4 Clause 8
Yes Yes
Yes
In
(Admitted)
Page 7 of 24
implementation?
(d) it has provisions for approvals required and the timeline of the same?
(e) the resolution applicant has the capability to implement the resolution plan?
Clause 12 and 13
Clause 1, 4.3, 4.4 and 6.4
Yes
Yes
Regulation 39(2)
Whether the RP has filed an application in
respect of transactions observed, found or
determined by him?
Transactions
could not be
filed due to
inadequate
information
No
Regulation 39(4)
Provide details of performance security
received as referred to in sub-regulation
(4A) of Regulation 36B
Attached
Yes
The salient features of the Resolution Plan are as under:-
i.
The resolution plan amount is Rs. 855 Lakhs and the SRA
proposes to pay the total amount to Stakeholders within 60 days from
the NCLT approval date.
ii.
The SRA proposes to pay the CIRP cost on approval by NCLT and
completion of all necessary legal and other compliance in priority to claims
of any other creditors, estimated at Rs. 30 Lacs, within 30 days of the
approval date as mentioned under clause 5.3.
iii.
The SRA proposes to pay an upfront payment of Rs. 200 Lakhs to
all the Secured Financial Creditors on pro-rata basis within 30 days and
final tranche payment within 60 days from the approval date as
mentioned under clause 5.4
iv.
The SRA proposes to pay an upfront payment of Rs. 5.36 Lakhs to
unsecured financial creditor within 30 days and final tranche payment
within 60 days from the approval date. It is proposed that the upfront
In
(Admitted)
Page 8 of 24
cash payment would made on the pro rata basis of total admitted claim
amount of unsecured financial creditor as on date of approval of this
plan, considering share of each of the claimant in the group of unsecured
financial creditors as mentioned under clause 5.6
v.
There were no claims submitted by Operational Creditors being
Workmen, employees of the Corporate Debtor and there were no claims
received from the Operational Creditors on Government Dues.
vi.
The SRA proposes an upfront payment of Rs. 22.05 lakhs to the
EPFO within 30 days and final tranche payment within 60 from the
approval date. SRA has also provided in its plan if by virtue of order of
this Tribunal, he has to pay any additional amount to the EPFO, then
such excess shall be adjusted from the dues of Secured Financial
Creditors as mentioned under clause 5.7
vii.
The Resolution Professional has admitted an amount of Rs. 1.31
Lakhs of Operational Creditors, whereas the SRA has proposed to pay an
amount of Rs. 0.13 Lakh which is 10% of the admitted dues within 60
days from the approval date as mentioned under clause 5.7.
viii.
It provides for the management and control of the company during
the term of the resolution plan as mentioned under Clause 8 of the
approved resolution plan and also provides proper process of
implementation and supervision of the Resolution Plan, thereby providing
a provision related to the constitution of the monitoring committee as
mentioned under clause 8.
In
(Admitted)
Page 9 of 24
We have heard the Learned Counsel for the RP and have carefully
perused all the pleadings placed on the records. This Application seeking
approval of the Resolution Plan is filed on 26.08.2025 whereas the extended
CIRP period had ended on 16.08.2025 and as such there has been delay of
11 days in filing of the Application. Vide Order dated 14.10.2025, this delay
has already been condoned. Further, it is noted that the CoC approved the
Resolution Plan of Kaane Packaging Private Limited by 85.55% voting share
and as such it is not necessary for us to go into details of the commercial
wisdom of CoC. We proceed to examine the plan in light of provisions
contained in Sections 30(2) and 31 of the Code r.w. Regulation 38 of the
IBBI (CIRP of the Corporate Debtor) Regulations, 2016. The resolution
professional has placed on record the compliance certificate in Form-H. It
shows that the fair value of the assets of the corporate debtor is
Rs.9,28,76,777/- whereas, the liquidation value of the corporate debtor is
Rs.7,53,42,884/-. The Resolution Plan value as proposed by the successful
resolution applicant is Rs.8,55,00,000/-.
5.
In order to obtain the approval of the Adjudicating Authority, the
Resolution Plan should adhere to the following requirements as per section
30(2) of the Code and Regulation 38 of the CIRP Regulations thereunder:-
i.
It should provide for the payment of corporate insolvency
resolution process costs in priority to the repayment of other
debts of the corporate debtor.
[Section 30(2)(a)]
In
(Admitted)
Page 10 of 24
ii.
The repayment of the debts of operational creditors should
not be less than the amount to be paid to such creditors in the
event of liquidation of the corporate debtor under section 53 of
the Code, or the amount that would have been paid to the said
creditors if the amount to be distributed under the resolution
plan had been distributed in accordance of section 53(1) of the
Code.
Moreover, the payment to the operational creditor is to be made
in priority over the financial creditor;
Further, the repayment of the debts of dissenting financial
creditors should not be less than the amount that would have
been paid to such creditors in the event of liquidation of the
corporate debtor under section 53 of the Code and the payment
to said dissenting financial creditor is to be made in priority to
the consenting financial creditors.
[Section 30(2)(b) read with CIRP Regulation 38(1)(a) & 38(1)(b)];
iii.
Provides for the management of the affairs of the corporate
debtor after approval of the resolution plan.
[Section 30(2)(c) read with CIRP Regulation 38(2)(b)];
iv.
The implementation and supervision of the resolution plan.
[Section 30(2)(d) read with CIRP Regulation 38(2)(c)]
In
(Admitted)
Page 11 of 24
v.
It does not contravene any of the provisions of the law for
the time being in force.
[Section 30(2)(e)];
vi.
It conforms to such other requirements as may be
specified by the Board.
[Section 30(2)(f)]
Such other requirements of the resolution plan as detailed in
IBBI (Resolution Process for Corporate Person) Regulations, 2016
which are not covered above, are as under:
a.
The Resolution Plan should include a statement as to how
it has dealt with the interest of all stakeholders including
financial creditors and operational creditors of the corporate
debtor.
[CIRP Regulation 38 (1A)]
b.
The Resolution Plan should include a statement giving
details as to whether the resolution applicant or any of its related
parties has at any time failed to implement or caused the failure
of implementation of any other Resolution Plan which was
approved by the Adjudicating Authority.
[CIRP Regulation 38 (1B)]
c.
The Resolution Plan should contain the term of the plan
and its implementation schedule.
[CIRP Regulation 38(2)(a)]
In
(Admitted)
Page 12 of 24
d.
The Resolution Plan should also demonstrate that it
addresses the cause of default; is feasible and viable; has
provisions for its effective implementation; has provisions for
approval required and timeline for the same. Further, that the
Resolution Applicant has the capability to implement the
Resolution Plan.
[CIRP Regulation 38(3)]
6.
During the course of the hearing, our attention has been drawn to the
Para Nos.5.7.4, 5.75. and 5.7.6. of the Resolution Plan as regards the PF
dues. As mentioned in those paragraphs, and submitted by the Learned
Counsel, as against the amount of Rs.1,71,19,236/- payable on account of
provident fund, the Resolution Applicant has reserved the amount of
Rs.79,86,854/-. However, at the same time, it was stated that PF, Pension
Fund and Gratuity Fund being statutory obligations and held in trust for
the employees under the Employees Provident Funds and Miscellaneous
Provisions Act, 1952, shall be honoured without any deduction, waiver or
compromise, in pursuance to the judgment of the Hon'ble Supreme Court in
Jalan Fritsch Consortium v. Regional Provident Fund Commissioner &
Anr. (Civil Appeal No. 407 of 2023, dated 30 January 2023) and the Hon'ble
NCLAT judgment in Jet Airways (India) Ltd. It is also mentioned therein
that this will be done by way of adjustment from the proposed payment
allocated to the secured financial creditors; and the future claim by the PF
Department for prior period till CIRP date shall also be considered/paid by
In
(Admitted)
Page 13 of 24
the CD. The submissions so made also been recorded in the order dated 14.10.2025. 7. In view of the provisions of the Code, as summarized hereinabove in Para 5, the Resolution Plan is examined as follows:- i. The Resolution Plan provides for payment of CIRP cost at Rs.30 Lakh within 30 days in priority over the amounts payable to other stakeholders. Thus the provision of Section 30(2)(a) are complied with. ii. There are no dissenting Financial Creditors. The Resolution Plan has been approved by the CoC with 85.55% voting comprising of 81.52% voting share of Union of India and 4.62% voting share of Richcredit Finance Private Limited. The 3rd Member of the COC Mr. Madan Gopal Banga (Unsecured Financial Creditor) having voting percentage of 14.45% has abstained from voting. Further, as against the total admitted dues of Operational Creditor (other than workmen, employees and Government dues), the Resolution Plan provides for payment of an amount of Rs.31,462/- which is 10% of their admitted claim. As provided under Section 30(2)(b) of the Code, the repayment of debts of an Operational Creditor should not be less than amount to be paid to such Creditor in the event of Liquidation of the Corporate Debtor under Section 53 of the Code or the amount that would have been paid to the said Creditor if the amount is distributed under the Resolution Plan had been distributed in accordance with Section 53(1) of the Code.
In
(Admitted)
Page 14 of 24
In the present case, the liquidation value of the Corporate Debtor is ₹7,53,42,884/-, whereas the Resolution Plan value is ₹8,55,00,000/- against the total admitted claims of ₹28.43 crores, including a debt of ₹23.00 crores admitted in favour of the Secured Financial Creditors alone. Even if the liquidation value or the plan value were to be distributed strictly in accordance with the priority set out under Section 53 of the IBC, the entire amount would be fully absorbed by the higher-priority stakeholders, particularly the Secured Financial Creditors, leaving no residual amount for the Operational Creditors. Despite this, the Resolution Plan provides for payment to the Operational Creditors (other than workmen, employees, or Government dues), though the amount is quite nominal at ₹13,146/-, which is 10% of their admitted claim. There are no claims of workmen or employees. The Government dues of ₹1,17,19,236/- are essentially provident fund dues, which, in any case, are required to be paid in full to the Provident Fund Department. As already mentioned in paragraph 6 above, the Resolution Plan provides that the Provident Fund, Pension Fund and Gratuity Fund being statutory obligation and held under trust shall be paid in full. Thus as regards the payment to Dissenting Creditors or Operational Creditors, the Resolution Plan is compliant of the provisions of Section 30(2)(b) read with Regulations 38(1)(a) and 38(1)(b) of the CIRP Regulations.
In
(Admitted)
Page 15 of 24
iii.
The mechanism for management and control of the affairs of the
Corporate Debtor after approval of the Resolution Plan till its
implementation has been provided in Clause 7.1.2. of the Resolution
Plan, whereby the management of the affairs of the Corporate Debtor is
entrusted upon the Monitoring Committee.
It is also provided that the Company shall be a board-managed
Company upon approval of the Resolution Plan; that the Board would
be formed within 30 days of the date of approval of the Resolution Plan
by the Adjudicating Authority and other approval if any required; that
the new Board shall be accountable for the day-to-day operations of
the Company and shall be bound as per the applicable law to protect
and preserve the value in the company. The name of the Directors as
proposed to be in the Board are Mr. Suyash Walia (DIN:08977461)
and Ms. Mohina Walia (DIN:09147503). Accordingly, adequate
provision has been made for the management of the affairs of the
Corporate Debtor after the approval of the Resolution Plan and thus,
the provisions of Section 30(2)(c) of the Code r/w CIRP Regulation
38(2)(b) of the CIRP Regulations has been complied with.
iv.
The Implementation and Supervision of the Resolution Plan is
entrusted to the Monitoring Committee which is to be appointed in
consultation with the CoC on such mutually agreed terms as approved
by the CoC Members for the period with effect from the date of
approval of the Resolution Plan by the NCLT. It is also provided that
In
(Admitted)
Page 16 of 24
from the date of NCLT approval till the constitution of the Monitoring
Committee,
the
Resolution
Professional
shall
supervise
the
implementation of the Resolution Plan. As such, the provisions of
Section 30(2)(d) read with Regulations 38(2)(c) is complied with.
v.
The RP has submitted that the Resolution Plan does not
contravene any provisions of law. We also noted that the Resolution
Plan does not contravene any provisions of the law for the time being
in force. Thereby, the provisions of Section 30(2)(e) has been complied
with.
vi.
The Resolution Plan also conforms to other IBBI Regulations as
given hereunder:
a.
The resolution plan adequately deals with the interest of
all stakeholders, including financial creditors and operational
creditors of the corporate debtor. Thereby, the Resolution Plan is
in compliance with Regulation 38(1A) of the CIRP Regulations.
b.
It is submitted that neither the Resolution Applicant nor
any of its related parties have at any time failed to implement or
contributed to the failure of implementation of any other
resolution plan which was approved by the Adjudicating
Authority. Thereby, the Resolution Plan is in compliance with
Regulation 38(1B) of the CIRP Regulations.
c.
The term of the Resolution Plan and its implementation
schedule is given in Clause 8.1.4, page 260-261 of the
In
(Admitted)
Page 17 of 24
Resolution Plan. It provides for entire payment to the various Stakeholders within 60 days from the approval of the Resolution Plan by the Adjudicating Authority. For ready reference the implementation schedule is reproduced hereinbelow:-
“8.1.4 Implementation Schedule:- Step Key Steps Time (in days) 1. Date on which the Plan Approval Order has been passed by the Adjudicating Authority approving this Resolution Plan. (i.e. Plan Approval Date).
Y 2. Constitution of Monitoring Committee Y+2 3. Increase in the authorized share capital of the Company.
Y+30 4. Interim Management of the Company by the Monitoring Agency. Y+till transfer date 5. Issuance of fresh shares to the Secured Financial Creditors and the Resolution Applicant/GSC/Other Entity Y+30 6. Extinguishment of shares held by the existing shareholders by way of selective capital reduction. 7. Purchase of (i) shares held by the Secured Financial Creditors (other than the Secured Financial by the Resolution Applicant/such Other Entity in accordance with the terms of this Resolution Plan. 8. Infusion of Rs.257.41 Lakh by the RA in the designated bank account of the Corporate Debtor for:- a) Payment for CIRP cost and other payments proposed within 30 days from the effective date. b) Issuance of fresh equity shares in the Corporate Debtor, as mentioned in Clause 6.2.2 of the Resolution Plan and up to fully paid up 2,69,04,455 equity shares at Rs.10/- face value by the RA in the Corporate Debtor.
Y+30
In
(Admitted)
Page 18 of 24
c)
Balance payment to be brought in as a
Debt from owned sources or affiliated
concerns.
9.
Infusion of balance payment of Resolution Plan
amounting to Rs.597.59 lakh, to be brought in
as a Debt from owned sources or affiliated
concerns as per schedule mentioned in Clause
6.4.2.
Y+60
10.
Delivery of No Objection Certificates, No Dues
Certificates, etc. in relation to the Secured
Financial Creditor Settlement Amount from the
Secured Financial Creditors;
Y+90
11.
Passing
of
necessary
resolution
by
the
Monitoring Committee of the Corporate Debtor
to:-
a) Approve
issuance
and
allotment
of
Equity Shares of the Corporate Debtor to
the RA and its nominees against money
infused, as mentioned in Step 3 above;
b) Approve Capital Reduction as mentioned
in Clause 6.2.2 above;
c) Take
note
of
requisite
no-objection
certificate (NoCs) for satisfaction of
existing charges on MCA, CERSAI, etc.
issued by Financial Creditor in relation
to
the
Secured
Financial
Creditor
Settlement Amount;
d) To execute all requisite documents, as
may be required, to give effect to and
implement this Resolution Plan.
Y+30 12. Handover of all the Assets/Real Estate/Offices of the Corporate Debtor to the Resolution Applicant and/or its nominee(s). Y+60 13. The Monitoring Committee shall approve the appointment of representatives of Resolution Applicant as Directors of the Corporate Debtor. The Implementing Agent shall use its digital signatures or shall use the digital signatures of one of the existing directors to upload the e- form with the RoC/MCA related to appointment of the representatives of Resolution Applicant are appointed on the Board of Corporate Debtor, that date will be termed as the ‘Effective Date’. Y+30 14. Corporate Debtor to take note of the vacation of office of the existing directors (other than those appointed by the Resolution Applicant) and Y+30
In
(Admitted)
Page 19 of 24
termination of the contracts with identified members of the existing board of directors of the Corporate Debtor with immediate effect. 15. Necessary e-form, etc shall be filed w.r.t. satisfaction of charge of the Secured Financial Creditor. Y+90”
Thus, Regulation 38(2)(a) of the CIRP Regulation has been duly
complied with.
d.
The Resolution Plan addresses the cause of default; is
feasible
and
viable;
has
provisions
for
its
effective
implementation; contains provisions for approval required and
the timeline for the same. Further, that the resolution applicant
has the capability to implement the Resolution Plan. Thus,
Regulation 38(3) of the CIRP Regulations has been complied
with.
8.
An Affidavit was filed in pursuance of directions given by this
Adjudicating Authority vide order dated 14.10.2025 to file the document
related to the Section 29A of the Code for verification of the SRA.
9.
It is to be noted that the Resolution Applicant has over two decades of
experience and an annual turnover of Rs 1200 million and further
specializes in high-quality, ISO and HACCP-certified laminates and pouch
packaging solutions across sectors such as food and beverages, personal
care, pharmaceuticals, and home products. Backed by state-of-the-art
Infrastructure, advanced manufacturing capabilities, and a reputed
clientele, Kaane Packaging Private Limited is committed to delivering value
In
(Admitted)
Page 20 of 24
through innovation, quality excellence, and sustainable business practices. Regarding the source of fund, it has been stated that: i. The net worth of the Resolution Applicant is Rs 1509.97 Lakh. Hence the payment proposed herein shall be easily met by the RA. ii. Funds would be sourced in the form of owned as well as borrowings under the name of Resolution Applicant and infused to Corporate Debtor either as unsecured loans from Resolution Applicant or unsecured loans from investors. 10. The Relief and Concessions are sought by the Resolution Applicant in Part E, Clause 15 & 16 of the Plan. The Resolution Applicant is seeking certain reliefs and concessions which are in the nature of prayer and not a condition precedent for the implementation of the Resolution Plan. It is submitted that since there is a change in management and control of the Corporate Debtor in the Resolution plan which has been submitted by the SRA and approved by the COC with requisite majority and such change satisfies the conditions stipulated in Section 32A of the Code, therefore the benefit of immunity under Section 32A of the Code shall be applicable to the Resolution Applicant. In the context, we have considered the submissions made by the Learned Counsel. The relief and concession as sought by the SRA are dealt with here as under:- 10.1 As regards the reliefs and concessions claimed by the resolution applicant with respect to the unpaid liabilities after the approval of the plan
In
(Admitted)
Page 21 of 24
and the claims not filed at all with the RP during the CIRP, the law has been well settled by the Hon’ble Supreme Court in the case of Ghanshyam Mishra and Sons Private Limited Vs. Edelweiss Asset Reconstruction Company Limited and Ors. Reported in MANU/SC/0273/2021 in the following words:
-
“……..The legislative intent behind this is to freeze all the claims so that the resolution applicant starts on a clean slate and is not flung with any surprise claims. If that is permitted, the very calculations on the basis of which the resolution applicant submits its plans, would go haywire and the plan would be unworkable. 87. We have no hesitation to say that the word "other stakeholders" would squarely cover the Central Government, any State Government or any local authorities. The legislature, noticing that on account of obvious omission, certain tax authorities were not abiding by the mandate of I&B Code and continuing with the proceedings, has brought out the 2019 amendment so as to cure the said mischief…..”
In view of the above, all unpaid liabilities and those which are not included in the said resolution plan would stand extinguished.
10.2 After the corporate debtor is taken over by the new management, no inquiry, investigation, litigation etc. will be made against it in relation to the period prior to the CIRP.
10.3 As regards allowing carry forward losses, it is to be noted that following the process of the CIRP and on extinguishment of the unpaidIn (Admitted)
Page 22 of 24
liabilities, the financial accounts are to be recasted by providing a suitable
accounting entries whereby, the extinguished liabilities together with the
extinguished share capital of the previous management would get converted
into the Capital/General Reserve and as such the accumulated losses, if
any, will have to be first of all set off against such a Reserve. For balance
amount, if any, the SRA can approach the Income Tax Authorities.
10.4 As regards other reliefs and concessions sought by the resolution
applicant, we direct the said successful resolution applicant to approach the
concerned statutory authorities for those concessions and those authorities
will consider the same as per the provisions of law under the relevant Acts
keeping in view the intent and object of the IBC.
10.5 The relief which is not specifically provided should not be treated as
being allowed. Even if no reliefs or concessions are granted by the
authorities concerned then also SRA is bound to implement the resolution
plan effectively without taking shelter of refusal by authorities concerned by
non-implementation of the plan.
11. The proviso to Sub-Section (1) of Section 31 of the Code, 2016 states
that before passing any order for approval of the resolution plan, the
Adjudicating Authority should also satisfy that the resolution plan has
provisions for its effective implementation. In view of the discussions and
findings as made hereinabove, we are satisfied that Resolution Plan in
question meets the requirements as referred to in Sub-Section (2) of Section
30 of the IBC and the Resolution Plan also contains the provisions for its
In
(Admitted)
Page 23 of 24
effective implementation, and in the result, we hereby approve the
Resolution Plan submitted by Kaane Packaging Private Limited, subject
to the following consequential directions:-
i.
Application is allowed.
ii.
The Resolution 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.
iii.
The approved ‘Resolution Plan’ shall become effective from the
date of passing of this order.
iv.
The order of moratorium dated 21.08.2024 passed by this
Adjudicating Authority under section 14 of the IBC, 2016 shall cease to
have effect from the date of passing of this order.
v.
The resolution professional shall forthwith send a copy of this
order to the participants and the resolution applicant(s).
vi.
The resolution professional shall forward all records relating to the
conduct of the Corporate Insolvency Resolution Process and resolution
plan to the Insolvency and Bankruptcy Board of India to be recorded in
its database.
In
(Admitted)
Page 24 of 24
- As a result, the Application bearing IA(IBC)(PLAN)12/2025 stands allowed.
Sd/-
Sd/-
(K.K. SINGH) (K. BISWAL)
MEMBER (TECHNICAL) MEMBER (JUDICIAL)
Priyanka/Stenographer
Verbatim extracted text (OCR/PDF). Older scans and tables may show extraction artifacts — verify against the original for anything you act on.
No analysis has been generated for this document yet.