NCLT Mumbai Approves Promoter’s Resolution Plan For Srithik Ispat Pvt. Ltd.

Background Facts

Srithik Ispat Pvt. Ltd. (“Corporate Debtor”) is a Micro, Small, Medium Enterprise (MSME) company, engaged in the business of manufacturing sponge iron in Goa, Maharashtra.

Swastik Coal Corporation Pvt. Ltd. (“Operational Creditor”) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), seeking initiation of Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor. On 30.09.2019 the Adjudicating Authority initiated CIRP against the Corporate Debtor. Mr. Raj Kumar Dad was appointed as an Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional.

Approval Of Resolution Plan

A resolution plan was submitted by the Promoter of the Corporate Debtor, Mrs. Girija Agarwal (“Successful Resolution Applicant/SRA”), which was approved by the Committee of Creditors (CoC) on 06.03.2021.

The Resolution Plan submitted by the SRA is for a total amount of Rs. 8,70,00,000/-. The plan proposes to pay the Secured Financial Creditors Rs. 8,20,00,000/- as against the admitted amount of Rs. 32,63,64,000/-. The operational creditors (Government) are proposed to be paid Rs. 7 Lakhs as against an admitted claim of Rs. 10,44,83,597/-. While operational creditors other than the Government, Employees and Workmen are proposed to be paid Rs. 1,50,000/- as against an admitted amount of Rs. 4,17,00,000/-.

No salary or wages dues are proposed to be paid to the workers. Further, the statutory dues towards labour (including PPF dues being more than 2 years old) are covered under Operational Creditors (Statutory Creditors). Hence, no amount is to be paid towards the same.

The Resolution Professional filed an application under Section 31 of IBC before Adjudicating Authority for approval of the resolution plan.

The Adjudicating Authority vide an order dated 11.01.2023 has approved the Resolution Plan submitted by the Corporate Debtor’s Promoter.

Case Title: Swastik Coal Corporation Pvt. Ltd. v Srithik Ispat Pvt. Ltd

Case No.: CP (IB) No.4549/MB-IV/2018

Counsel For Applicant: Mr. Ajinkya Kurudkar, Advocate.

Counsel For the CoC: Mr. Rohit Gupta, Advocate.

Click Here To Read/Download the Order