IN FORCE undated

11th July, 2025 Approval of Resolution Plan - Nadhi Bio Products Private Limited [IA (Plan) No. 13 of 2024 in C.P (IB). No. 99/7/HDB/2022] (15.22 MB)

Document text

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. NATIONAL COMPANY LAW TRIBUNAL HYDERABAD BENCH-1

IA (Plan) NO. 13 OF 2024 IN

C.P (IB). NO. 99/7/HDB/2022

Application under Sections 30(6) and 31 read with Regulation 39 (4) of IBBI . (CIRP) Regulations 2016,

IN THE MATTER OF:

R.K. DISTILLERIES PRIVATE LTD FINANCIAL CREDITOR Vs

NADHI BIO PRODUCTS PRIVATE LTD . CORPORATE DEBTOR

Filed by SREENIVASA RAO RAVINUTHALA RP OF NADHI BIO PRODUCTS PRIVATE LIMITED Unit No. 1203A, 11 th Floor, Level 12, Vasavi MPM Grand Yellareddy Guda Road, Ameerpet, Hyderabad 500073, Telangana ... Applicant / Resolution Professional

... Applicant / Resolution

Date of order: 12.06.2025

Coram:

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¥in Shri Rammurti Kushawaha, Hon’ble Member Judicial Sy "7 Shri Charan Singh, Hon’ble Member Technical 2 Appearance: \ For Applicant: Shri Shaik Gouse & Shri Mahadev Tirunagari, PCS —

NCLT hyd-1 IA (Plan) NO.130F 2024 - IN C.P (IB). NO. 99/7/HDB/2022 DOO: 12.06.2025

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PER :BENCH ORDER

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. Nadhi Bio Products Private Limited (Corporate Debtor), under Sections 30(6) and 31 read with Regulation 39 (4) of IBBI (CIRP) Regulations 2016, seeking approval of Adjudicating Authority under section 31 of the IBBI, 2016, on the Resolution Plan submitted by Mr. Nakkirikanti Rammurthy Jointly with Mr. Namburi Visweswara Rao (Successful Resolution Applicant/SRA), as approved by the Committee of Creditors (COC) with 82.29% of voting share.

| |

AVERMENTS IN THE APPLICATION: -

Initiation of CIRP:

That, a petition under Section 7 of the IBC was filed by R.K. Distilleries Private Limited (“Financial Creditor”) against the Corporate Debtor i.e. Nadhi Bio Products Private Limited, which was admitted by this Tribunal vide order dated 26.05.2023 by appointing Mr. Ramakanth Malapalli as Interim Resolution Professional and was replaced with True IPE Private Limited represented by Mr. Chandra Prakash Jain, as the Interim Resolution Professional, who was later confirmed as the Resolution Professional. Subsequently, vide order dated 29.04.2024, the Hon’ble Tribunal replaced the Erstwhile Resolution Professional with the present Applicant, Mr. Sreenivasa Rao Ravinuthala, whose appointment order is annexed and marked as Annexure FS compar WY Sfga\e,® : Lee JP 8) he

NCLT hyd-1 IA (Plan) NO. 13 OF 2024 C.P (IB). NO. scene : : DOO: 12.06.2025 3

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Constitution of Committee of Creditors (CoC):

The Erstwhile Resolution Professional, after verification and collation of claims, constituted the Committee of Creditors (CoC) comprising 28 members with admitted claims amounting to %65.70 Crores, and their respective voting shares as tabulated below:

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|||||||
|---|---|---|---|---|---|
|(in|Rs.)|Share|
|[te|[Ramesh|rnatcreter|TT|[hae|||
|Razauddin)|
||7|——SSSCSC*dCSCSC*B,KalvenknitBKDistilleriesPrivate|Limited|—*(|_—=—«2,44,80,000|3.73 __||
|8.||SciLCapitatindiaPrivateLimited«| —,74,11,311|SOT|2.60DBT _||
|‘|v. [ShanthiDeviGlobalEximPvtLtd||_—_—‘1,50,00,000||2.28|||
|HUF|/|AvadhanulaSree|Rama|Chandra|
|Murthy|IND|
|(Kalakonda|Rohan Chandra)|

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NCLT hyd-1 IA (Plan) NO. 13 OF 2024 IN C.P (IB). NO. 99/7/HDB/2022 DOO: 12.06.2025

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|||||
|---|---|---|---|
|VijayaBhaskar|Reddy Kandula|
|Mukku|Siva|Prasad|
|Narasa Reddy Mukku|||_—«4,00,000||0.06|
|a|

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e CIRP Timeline & Extensions:

During the CIRP, this Tribunal has granted multiple extensions, which are

tabulated as below:

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|||||||
|---|---|---|---|---|---|
|= Commencement|—_|5g|05.2023 (Order uploaded on 06.06.2023)|
|1st|.|Order dated 17.01.2024 (Effective from|
|Extension|(90 days)|02.12.2023)|.|
|2nd|5|Order dated 26.03.2024 (Effective from|
|Extension|(60 days)|29.02.2024)|
|3rd|Extension|(30|days)|_|[Order dated|29.04.2024|
|Final.|Extension.|(30 days)|98,05.2024)|
|P||Order|dated 27.05.2024 (Effective from|}|
|| Final Expiry Date of CIRP||26.06.2024|

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° TOTAL COC MEETINGS CONDUCTED DURING CIRP:

A total of twenty-two (22) meetings of the Committee of Creditors (CoC) were conducted during the Corporate Insolvency Resolution Process (CIRP) prior to the filing of the present application byte Resolution Professional.

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NCLT hyd-1 IA (Plan) NO. 13 OF 2024 C.P (IB). NO.—— DOO: 12.06.2025 5 ,

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° APPOINTMENT OF REGISTERED VALUERS

The erstwhile Resolution Professional, in accordance with the applicable provisions of the Insolvency and Bankruptcy Code, 2016, and the relevant regulations framed thereunder, obtained the valuation of the assets of the Corporate Debtor. As per the said valuation, the fair value of the assets of the Corporate Debtor is determined to be Rs. 72.21 Crores, and the liquidation value is determined to be Rs. 47.37 Crores.

° EOI & RESOLUTION PLAN PROCESS: : _ Form G was first published on 16.11.2023, and after an extension (due to elections), the last date for EOI submission was revised to 12.12.2023. The final list of 21 Prospective Resolution Applicants (PRAs) was published (Annexure — 3).

RECEIPT & EVALUATION OF RESOLUTION PLANS:

It is submitted that, pursuant to the RFRP and the Information Memorandum, the Erstwhile Resolution Professional received eight (8) Resolution Plans from the final list of twenty-one (21) Expressions of Interest (Eols).These Resolution Plans were subsequently placed before the Committee of Creditors (CoC) for its consideration, discussion, and approval:in the 20th CoC Meeting held on 20.04.2024. The CoCdeliberated and discussed upon the compliance, viability and feasibility of final resolution plans as submitted by the 08 Prospective Resolution Applicants and the same were put for e-voting from 23.04.2024 and extended ‘upto 27.05.2024, pursuant to the directions of this Hon’ble Adjudicating Authority in IA 775 of ee—_

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NCLT hyd-1 — IA (Plan) NO. 13 OF 2024 IN C.P (IB). NO. 99/7/HDB/2022 DOO: 12.06.2025

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° APPROVAL OF RESOLUTION PLAN:

The Resolution Plan submitted by Mr. Nakkirikanti Rammurthy jointly with Mr. Namburi Visweswara Rao was approved by the CoC with 82.89% voting share. It is submitted that the approved resolution plan meets all the requirements envisaged under the Code, rules and regulations made there under,

e LETTER OF INTENT & BANK GUARANTEE:

Pursuant to the approval, the Resolution Professional issued the Letter of Intent and received Bank Guarantee bearing No. 06301IGL0001624 dated 01.06.2024 for £10 Crores. A copy of the letter of extension of Bank Guarantee till 01.06.2026 is filed along with memo dated 09.06.2025.

SALIENT FEATURES OF RESOLUTION PLAN:

(a) Mr. Nakkirikanti Rammurthy, aged 64, has over 36 years of experience in agro commodities, rice milling, real estate, hospitality, and solar power. He is known for successfully turning around stressed assets and managing diverse business ventures.

Mr. Namburi Visweswara Rao, aged 54, has over 20 years of experience in rice trading, brokerage, and real estate, with expertise in marketing, sales, and operations, contributing to profitability and business growth.

(b) The COC comprised of the following Financial Creditors and distribution of

voting share among them is as under:

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NCLT hyd-1 IA (Plan) NO. 13 OF 2024 C.P (IB). NO.—N DOO: 12.06.2025

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||Somajiguda<br>(4. [ICiciBankLimited<br>———s«|_—7.87,50,474| 11.22| Yes__||Somajiguda<br>(4. [ICiciBankLimited<br>———s«|_—7.87,50,474| 11.22| Yes__||||
|---|---|---|---|---|
||Supplement(Syed Razauddin)<br>6.<br>| RKDistilleries PrivateLimited|_2,4**4,**8**0,0**00**|** <br>7. [Kalvaakht<br>«| —*148 5<br>70<br>elas<br>ne Prme] man] <br>Limited<br>|<br>Ltd|3.73 **|** No |<br>2.81<br>Abstain_<br> 38|||
||||,||
||Chandra<br>Murthy<br>HUF<br>/||||
||Avadhanula<br>Sree<br>Rama||||
||Chandra MurthyIND||||
|||.|||
||(Kalakonda RohanChandra)||||
||Kandula||||
|;|||||
||28. [NarasaReddyMukku—«|__—«4,00,000|<br>0.06| No |<br>i<br>a<br>a<br>Pe<br>Cdwoe<br>(ae SP<br>oy||||
|||||:|
||sf<br>erie<br>a|ol|||

NCLT hyd-1 IA (Plan) NO. 13 OF 2024 IN

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C.P (IB). NO. 99/7/HDB/2022 DOO: 12.06.2025

. 8 (c) The amounts provided for the stakeholders under the Resolution Plan is as under:

||||under:||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
||||under:|||||||(Amount<br>in|||Rs.|lakh)|||
||SL.||Category | Sub-Category||of |Amount||Amount|||Amount|||Amount||||
||No.|||of|Stakeholder||Claimed|Admitted | Provided||||||Provided.||||
||||Stakehol|||||||under|the|||to|the|||
||||der*|||||||Plan#|||Amount||||
||||||||||||||Claimed||||
||||||||||||||(%)||||
||1||Secured | (a)<br>Creditors||not||||||||||||
||||Financial|| having a right to vote|||||||||||;||
||||Creditors||under<br>sub-section|||||||||||||
|||||(2) ofsection 21|||||||||||||
|||||(b)<br>Other<br>than|(a)||||||||||||
|||||above:|||||||||||||
|||||(i)who did notvote in|||||||||||||
|||||favour<br>of|the||||||||||||
|||||resolution Plan||3757.54||3757.54|3757.54||| 3757.54||||100%||||
|||||||||||||||||||
|,||||(ii)<br>who<br>voted|in||||||||||||
|||||favour<br>of|the||||||||||||
|||||resolution plan|||||||||||||
|||||Total{(a) + (b)]||3757.54||3757.54||3757.54|||100%||||
||2||Unsecure|| (a)<br>Creditors|not| 184.58|||86.44||86.44|||100%||||
||||d|having a right to|vote||||||||||||
||||Financial||under<br>sub-section|||;||||||||||
||||Creditors|| (2) ofsection21|||eee en.||||||||||
|||||||||||||||||.|
|||||;||(AE<br>NS<br>5<br>.<br>(8 SKbyyyaa|||||||||||
|||||||s/|ty||\es||||||||

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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|~|NCLT hyd-1|
|‘|IA|(Plan)|NO.13OF|2024|
|IN|,|
|C.P|(IB).|NO.|99/7/HDB/2022|
|DOO:|12.06.2025|
|.|9|
|(b)|Other|than|(a)|
|above:|
|(i) who did not vote in|1564.81|1123.91|1123.91|100%|
|favour|of|the|.|
|resolution|Plan|
|(i)|who|voted|in}|4999.25|||1689.32|| 1689.32|||100%|
|favour|of|the|
|resolution|plan|
|Total[(a) +|(b)]|3658.64|-||2899.67|||2899.67|
|3|Operatio|||(a)|Related|Party|of|
|nal|Corporate Debtor|
|Creditors|
|(b)|Other|than|(a)|
|above:|
|1981.81|8.45|8.45|100%|
|(i)Government|;|
|(ii)Workmen|328.78|1.18|115|100%|
|‘|
|(iii) Employees|;|
|16475.62|| 7621.28|[2286.38|30%|.|
|;|(iv)|Other than|above|
|.|
|Total{(a)|+|(b)]|18786.21|||7630.89|2295.99|30.09%|
|4|Other|IBBI|Regulated fee|26.41|
|debts and|
|)|dues|,|
|Grand Total Total|P|26202.40|| 14288.10 14288.10|| 8979.62 8979.62|||||

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dues , Grand Total Total P 26202.40 | 14288.10 14288.10 | 8979.62 8979.62 | | (d) PROPOSED PAYMENT DISTRIBUTION TO THE STAKEHODLERS: The SRA undertakes to distribute the Plan amount of Rs. 90.50 crores in the following manner: a [EoPOAiedAo) | if]RissON . , f Sf Ge \a4

NCLT hyd-1 IA (Plan) NO. 13 OF 2024 IN

C.P (IB). NO. 99/7/HDB/2022 DOO: 12.06.2025

|NameoftheCreditor||||Admitted|Resolution|(%)||Upfrontcash|Total|—|
|---|---|---|---|---|---|---|---|---|---|
|||||ClaimRs.|amountRs.||payment Rs.|Settlement]||
|||||||||amount||
|||||||||Rs.||
|ieee<br>Unrelated<br>Related<br>Un-Secured Financial||[ssn]mesa]<br>37,57,54,216|<br>-|||mesa] <br>37,57,54,216]<br>=|nl <br>100%]|ssi <br>37,57,54,216<br>--|msc<br>37,57 ,54,216<br>)<br>--||
||||||||||||
|Creditor<br>1.<br>Unrelated Parties|||28,99,67,521}||28,99,67,521||100%]|28,99,67,521|28,99,67,521||
|2.<br>Related Parties||||||||.||
|OperationalCreditors||||||||||
|ji. Operationalcreditors<br>(Statutorydues)<br>ii. Operational Creditors|||~|8,45,237<br>1,15,360|8,45,237|<br>1,15,360}|100%<br>100%|8,45,237<br>1,15,360|8,45,237<br>1,15,360|.|
|(Employees /workmen)|||||||||.|
|iii. Operational Creditors<br>(otherthan Statutory&|||76,21,28,193]||22,86,38,458|30%||22,86,38,458||22,86,38,458||
|workmen /employees)||||||||||
|a<br>an <br>Information Memorandum<br>Otherestimated liabilities||<br>.|[ee]||a|||haa <br>-—|eee<br>=||
|(notclaimed)—<br>-<br>IBBI (feeonrealizable|||||||26,41,196|26,41,196||
|valueto creditors on||||||||||
|approvalofResolution||||||||||
|Plan)La||||cs|||cn|||

Further SRA also propose to infuse an amount of Rs.28 Crore towards the repairs and maintenance of the plant and machinery, capital investment for capacity increase and working capital requirements after a period of 30 days depending upon the requirements of funds from time to time.

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NCLT hyd-1 IA (Plan) NO. 13 OF 2024 IN C.P (IB). NO. 99/7/HDB/2022 DOO: 12.06.2025 11

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(e) Monitoring Mechanism: AMonitoring Committee comprisingthe RP, 2 CoC members, and 2 Resolution Applicant nominees shall oversee plan implementation. The term of Monitoring Committee shall automatically terminate and stand dissolved upon the occurrence of Completion Date, without any action required to be taken by Resolution Applicant or Corporate Debtor. (f) 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 ‘HW’ prescribed under Regulation 39(4) of Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. PUFE Transaction Transaction Handling: The Resolution Plan provides mechanism for post-approval litigation of PUFE transactions. Any recovery realized will accrue to the Corporate Debtor as | 100% payment is being made to financial creditors. However, the Resolution Applicant will meet the cost of litigation during the period post approval of resolution plan till completion of Resolution Plan implementation. Post implementation, the Corporate Debtor under the management of the _ Resolution Applicant will pursue the litigation to its logical end. (h) Source of Funds , ‘

(g) PUFE Transaction Transaction Handling:

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NCLT hyd-1 IA (Plan) NO. 13 OF 2024 IN C.P (IB). NO. 99/7/HDB/2022 DOO: 12.06.2025 12

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i. A total amount of 90.50 Crores is proposed to be paid in cash, upfront, within 30 days from the date of approval of the Resolution Plan by the Hon’ble NCLT. This amount shall be treated as full and final settlement towards the claims of Financial Creditors, Operational Creditors, Government dues, other estimated liabilities, and the Corporate Insolvency Resolution Process (CIRP) costs.

ii. | The aforementioned amount of ¥90.50 Crores shall be funded by the Resolution Applicant and his associate as follows:

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|||||
|---|---|---|---|
|Share Capital contribution|by the Resolution Applicants|
|Unsecured|Loans from the|Resolution|Applicants|

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In addition to this commitment as per the Resolution Plan, the following

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||||||||
|---|---|---|---|---|---|---|
|funds|will be|brought|in|by the|promoter|.|
|Repairs & Maintenance|of plant & machinery|Rs.|5.00 Cr|
|Capital investmentfor|the addition|of a|bottling plant|
|(Within|one / two year of stabilization|of plant)|Rs.|15.00 Cr|
|Working Capital,|initial|working|capital, to be|Rs.|8.00 Cr|
|Total|Rs.28.00 Cr|

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These funds will be brought in by way of short-term funds, which will be replaced through bank funding after the stabilisation of operations.

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NCLT hyd-1 IA (Plan) NO. 13 OF 2024 IN C.P (IB). NO. 99/7/HDB/2022 DOO: 12.06.2025 13

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M/s Manchukonda Agrotech Private Limited has agreed to provide short-term funds up to Rs.70.00 Cr to the Corporate Debtor, M/s Nadhi Bio Products Pvt Ltd, once these RAs become Successful Resolution Applicants.

In the above backdrop we heard Shri Shaik Gouse, Ld. PCS for the Resolution Professional and perused the records. He submits that the Resolution Plan meets the requirement of Section 30 (2) of the Code,as

under:

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|||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Provisions|under Section|30(2)|of|Compliance|under Resolution|Plan|
|the|Code|
|(a)|provides|for|the|payment|of|| Yes, provision|has|been|made|for payment|
|insolvency resolution process costs|ina|||of the|Insolvency|Resolution|Process|Cost|
|manner|specified|by|the|Board|in||of|Rs.|70.00|lakhs|under|the|Resolution|
|priority to the repayment of other debts|Plan.|Any|amount|of|excess|or|shortfall|
|of the Corporate|Debtor;|towards|the|CIRP|cost|shall|be|paid|by the|
|Resolution|Applicant.|(Clause|6.1|Page|
|No.12).|
|[(b)|Whether|the|plan|provides|for the||The|amount|proposed|to|be:|paid|to|
|paymentto|the|Operational|Creditors|government|authorities|is|Rs.|8,45,237/-|
|and to other operational creditor (workmen|
|=.|and|employees)|is|Rs.|1,15,360/-.|Further|
|LEERY|an|amount|of|Rs.|22,86,38,456/-|is|
|Vison LayFENN|.|earmarked|for|dues|of|the|operational|
|i|S||Hee|‘e|creditors (other than dues of|workmen and|
|3|ay|¥|employees and|Govt.|dues. (clauses 6.4 &|
|“*@|Rae|i|
|F,|S55|6.5 page Nos. 13-15).|
|(c)Payment|to|adelaPBreditors who ||Yes provision has been for making payment|
|did|not vote|in|favour|of the|resolution|| of|Rs.1689.32|Lakhs|to|the|Unsecured|
|plan.|Financial|creditors|who|did|not|vote|in|
|favour of the|Resolution|Plan.|
|(d)|Management|of|the|affairs|of|the|Yes|the|Resolution|Plan|provides|for|the|
|Corporate|Debtor|after|approval|of the||management of the|affairs|of the Corporate|
|resolution|plan|Debtor (Clause|12.1|Page No 20).|

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|---|---|---|---|---|---|---|---|---|---|---|---|
|NCLT hyd-1|
|IA|(Plan)|NO.|13 OF 2024|.|
|IN|
|C.P|(IB). NO.|99/7/HDB/2022|
|DOO:|12.06.2025|
|,|14.|
|(e)|Provides for|the implementation and|||Yes,|Provides|for|the|implementation|and|
|supervision|of the Resolution|Plan|supervision|of the|Resolution|Plan|(Clause|
|16|Page|25).|
|(f)That|the|plan|does|not|contravene ||Statement|has|been|included|‘in|the|
|any|of the|provisions|of the|law for the|Resolution|Plan. (Clause|15.1|page 25)|
|time|being|in force|

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Further, the Resolution Plan is in compliance of Regulation 38 of the

Regulations in the following manner:

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||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|CIRP|Provisions of CIRP Regulations|Relevant clause|/ page|no. of|
|Regulation|Resolution|Plan document|
|Regulation|||[The]|[amount]|payable|under|the | Yes. Clause 6.5|
|38(1)(a)|resolution|plan|to|the|operational|
|creditors,|shall|be|paid|in|priority|
|over|financial|creditors.|
|Regulation||Whether|the|—|resolution|plan|| Clause 6.|
|38(1A)|includes|a|statement|as|to|how|it ||Declaration|by|the|Resolution|
|has|dealt|with|interest|of|all||Applicant|that|the|Resolution|
|stakeholders|including|Financial|| Plan has considered the|interest|
|Creditors and|Operational Creditors ||of|all|the|stakeholders|of|the|
|||of|the Corporate|Debtor.|Corporate|Debtor,|keeping|in|
|view the|objectives|of the|Code.|
|Regulation||Whetherthe|Resolution Applicantor|‘Clause|4.3:|Declaration|by|the|
|38(1B)|any of itsrelated parties has failedto|||Resolution|Applicant|that|
|implement|or|contributed|to|the ||neitherthe Resolution|Applicant|
|||failure|of|implementation|of|any ||nor|any|of|its|related|party|has|
|resolution|plan|approved|under the||either|failed|or|contributed|to|
|Code|the|failure|of|the|
|implementation|of|any|
|If|so,|whether|the|Resolution|||Resolution|Plan approved|under|
|Applicant|has|submitted|the ||the Code.|
|statement|giving|detai|sucha.|
|.|
|ent|gi|ne.|etails|obageh, <a|
|non-implementation.|7 ag)|Ltd»|PBN,|
|BPSK,|NE|.',|
|=|
|;|ao|eS|m|
|Ne|Fae|
|*|* fe|ae|

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NCLT hyd-1 IA (Plan) NO. 13 OF 2024 IN C.P (IB). NO. 99/7/HDB/2022, DOO: 12.06.2025 15

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° .

This Tribunal sought clarification from the Ld. PCS representing the Resolution Professional as to how the two claims that were admitted after filing of the application for approval of the Resolution Plan before the Adjudicating Authority, were dealt with? Pursuant thereto, the Ld. PCS filed a memo dated 11.06.2025, stating that the Resolution Professional admitted the following two claims pursuant to the orders passed by the Adjudicating Authority in the IA mentioned hereunder:

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||||||||||
|---|---|---|---|---|---|---|---|---|
|IA No.|Name|ofthe Applicant|Amount|of|claim||Amount|of|Claim|
|Rs.|admitted|Rs.|
|Agri|Link Enterprises|2,60,05,529 ||82,21,259|
|Sri|Krishna Sai|Traders|2,75,09,550|2,75,09,550|

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Vs The Ld. PCS further submitted that Clause7 of the Resolution Plan provides for Limit of liability of the Applicant restricted to the resolution amount of Rs.90,49,61,987 except the resolution process cost to be incurred by the Resolution Professional. The clause 7 of the Resolution plan is extracted below

Limit on Liability: “Notwithstanding anything contained in this Resolution Plan, in no event the total payments by the Resolution Applicant to its stakeholders as mentionedin the Clause 6 of this Resolution Plan, shall exceed Rs.90,49,61,987. However, this amount is exclusive of and subject to the total Resolution Process cost to be incurred by the Resolution Professional until the completion date and any amount payable to EPF authorities on reconciliation with the EPF Department.” Pg (8 S/n Ne x \e BA_ Me /BE =wa

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It is submitted that in clause 6 of the Resolution Plan, the Resolution Applicant allocated an amount of Rs.22,86,38,458 towards the settlement of the Operational Creditors whose claims were admitted.
In view of the aforesaid clauses, the two claims of operational creditors admitted by the Resolution Professional pursuant to the orders of this Adjudicating Authority, will be settled as per the allocation of amounts bythe Resolution Applicant in the resolution plan i.e the amount proportionately distributed among the operational creditors in the ratio of their admitted claims.
At the outset we refer to the following judgements: - (a) 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”.
(b) 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 dagsnet conform tothestated requirements. [eg ig? S \ ae OG

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(c) The Hon’ble Supreme Court in Committee of Creditors of Essar Steel India Limited Vs. Satish Kumar Gupta & Ors, held that:-

_ “the limitedjudicial 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”.

(d) 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:-

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 ofthe 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 thejudgments 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.
This Court has, time and again, emphasized the need for minimal judicial interference by ,the-NCLATand NCLT in the framework of IBC. We may referte theueceripdkservation of this

NCLT hyd-1 IA (Plan) NO. 13 OF 2024 IN C.P (IB). NO. 99/7/HDB/2022 DOO: 12.06.2025

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 the framework 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.....”

4, According to the Applicant, from the date of commencement of CIRP to till date of filing this instant application, a total of 22 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 02.12.2023. However, the time was extended time and again and the date of expiry of extended period of CIRP was 26.06.2024.

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6. The highlights of the resolution plan are as under:-

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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|1.|||IANo/CP No.|IA|1939/2024|in|CP|(IB)|No.|
|99/7/HDB/2022|
|2.|||Date|of|filing|of|resolution|plan|with|12.06.2024|
|the Adjudicating Authority|
|3.|| Name of the Resolution Applicant|Mr.Nakkirikanti|Rammurthy|
|Jointly|with|Mr.|Namburi|
|Visweswara|Rao|
|4.|| Voting %|in|favour|of the|Resolution|||82.89%|
|Plan|
|5.|| Resolution|Plan Amount provided|by|||Rs.|90.50|Crores|(including CIRP|
|-|| the SRA to the stakeholders|costs).|Further infusion of|Rs. 28|
|.|croresworkingfor|repairs,capitalcapexpost-and|
|implementation.|
|[&|| Total claims admitted by|the RP|Rs. 7630.89 lakhs|
|7.||%|of|amount|provided|to|the|30.1%|
|stakeholders|under|the|Resolution|
|Plan to the amount admitted|.|
|Cn|a|
|12.||Term/Implementation|schedule|30|days|from|the|NCLT|
|approval date|

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Oe - 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

eens pr OL iit BZ .-

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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 Mr. Nakirikanti Ramamurthy and Mr. Namburi Visweswara Rao (“Successful Resolution Applicant”) along with annexures, schedules forming part of the Resolution Plan annexed to the Application and order as under: - (a) 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. (b) 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. LE BEBE fas k

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. (c) 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 Courtin the matter of Ghanashyam Mishra & Sons Private Limited Versus Edelweiss Asset Reconstruction Company Limited in CIVIL APPEAL NO.8 129 OF2019 | dated 13.04.2021.

. ,

(d) It is hereby ordered that performance guarantee of Rs. 10,00,00,000/| deposited by the Successful Resolution Applicant shall remain as performance Guarantee till the amount proposed to be paid to the: creditors under the plan, is fully paid off and the plan is fully . implemented. |

(e) The Memorandum of Association (MoA) and Articles of Association (AoA) shall accordingly be amended and filed, if applicable, with the Registrar of Companies (RoC) Hyderabad 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.

(f) Henceforth, no creditors of the erstwhile Corporate Debtor can claim | anything other than the liabilities referred to supra. (g) The moratorium under Section 14 of the Code shall cease to have effect

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----- Start of picture text ----- from this date , ° a ae aN a fe S/— [om][ %y*] [] Se EaSHS, “2\ Aes ay ty * Yn Reg tee ----- End of picture text -----

, ' NCLT hyd-1 IA (Plan) NO. 13 OF 2024 IN :

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(h) 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.

(i) The Applicant shall forthwith send a copy of this order to the CoC and the Resolution Applicant.

(j) The Registry is directed to furnish free copy to the parties as per Rule 50 of the NCLT Rules, 2016.
(k) The Registry is directed to communicate this order to the Registrar of Companies, Hyderabad for updating the master data and also forward a copy to IBBI.
(Ll) The Monitoring Committee/ Resolution Professional will submit a report to the Registry immediately after the implementation of the

Plan.

(m) Accordingly, IA No. (plan) 13/2024 is allowed and stands disposed of.

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----- Start of picture text ----- (CHARAN.SINGH) [EB\ (RAMMURTI KUSHAWAHA) ----- End of picture text -----

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gar ule CERTIFIED TRUE COPY a Fen ginea |- castme nuwser.COLBIWO:29/7/Al AT He [2022 Beputy Registrar | Assistant rica ttm =fF wocene.AZIBL2025 ; National Company Law Tribunal, Hyderabad Bench copy nave neaoy on. 1G. /4. L2QeS

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