The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Justice Telaprolu Rajani (Judicial Member) and Shri Charan Singh (Technical Member), while adjudicating a petition filed in Bank of India v Indu Projects Ltd., has approved the Resolution Plan submitted by a consortium of B. Subba Reddy and C. Venkateswara Reddy for Indu Projects Ltd. The Resolution Plan...
The National Company Law Tribunal (“NCLT”), Hyderabad Bench, comprising of Justice Telaprolu Rajani (Judicial Member) and Shri Charan Singh (Technical Member), while adjudicating a petition filed in Bank of India v Indu Projects Ltd., has approved the Resolution Plan submitted by a consortium of B. Subba Reddy and C. Venkateswara Reddy for Indu Projects Ltd. The Resolution Plan is valued at Rs. 501 Crores.
Background Facts
Indu Projects Ltd. (“Corporate Debtor”) is a Hyderabad based company engaged in infrastructure construction services. The Corporate Debtor designs, constructs, and develops electricity transmission and distribution, roads, railways, pipelines, industrial buildings and structures, airports, irrigation, power generation, coal mining, and solar energy projects.
Bank of India (“Financial Creditor”) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), seeking initiation of Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor.
On 25.02.2019, the NCLT admitted the petition and initiated CIRP against the Corporate Debtor.
A consortium comprising of Mr. B. Subba Reddy and Mr. C. Venkateswara Reddy (“Successful Resolution Applicant/SRA”) submitted a Resolution Plan for the Corporate Debtor, which was approved by the Committee of Creditors (“CoC”) with 100% voting share. Accordingly, the Resolution Professional filed an application under Section 30(6) of IBC before the NCLT, seeking approval of the Resolution Plan.
Outlay Of The Resolution Plan
The Resolution Plan is valued at Rs. 501 Crores.
The resolution plan proposes to pay the Financial Creditors an amount of Rs. 394 Crores against an admitted claim of 3890 Crores. The Workmen and Employees of the Corporate Debtor would receive Rs. 1 Crore as against an admitted claim of Rs. 4.21 Crores. The Operational Creditors other than workmen and employees will be paid Rs. 4.9 Crores as against an admitted claim of Rs. 178 Crores. The Government will receive Rs. 18,432 towards their admitted dues of Rs. 1.82 Lakhs.
The Related Party of the Corporate Debtor have been paid NIL.
NCLT Verdict
The Bench has approved the Resolution Plan of B. Subba Reddy and C. Venkateswara Reddy for Indu Projects Ltd.
Case Title: Bank of India v Indu Projects Ltd.
Case No.: CP (IB) No. 372/7/HDB/2018
Counsel For Petitioner: Mr. S. Ravi, Sr. Counsel along with Mr. V.V.S.N. Raju, Advocate