NCLT approves Rs 55.51-cr resolution plan for Purulia Metal Casting
The Kolkata Bench of the National Company Law Tribunal (NCLT) approved the resolution plan submitted by DD International Private Limited for debt-ridden Purulia Metal Casting Private Limited. The plan, valued at ₹55.51 crores, was approved by the Committee of Creditors (CoC) with an 87.16% majority vote.
The total plan value, amounting to ₹55.51 crores, ensures that secured financial creditors receive a substantial payout of ₹51.40 crores. Operational creditors and other stakeholders are also allocated funds as part of the resolution plan.
The NCLT directed the resolution professional to transfer all records to DD International within 30 days. DD International must secure regulatory approvals (e.g., land surveys, permits) within 1 year. Non-compliance by DD International could result in forfeiture of the ₹5.56 crore performance guarantee.
Chart 1: Payout Distribution Under the Resolution Plan
Stakeholder Category | Admitted Claims (₹ Crores) | Amount Provided (₹ Crores) |
Secured Financial Creditors | 79.79 | 51.40 |
Unsecured Financial Creditors | 21.15 | 0.20 |
Operational Creditors | 170.78 | 0.25 |
CIRP Costs | – | 2.39 |
Total | 450.39 | 55.51 |
Key Insight: Secured creditors recover 64% of admitted claims, while operational creditors receive <0.15%.
Chart 2: Valuation Comparison by Independent Valuers
Valuer | Fair Value (FV) (₹ Crores) | Liquidation Value (LV) (₹ Crores) |
Sushant Agarwal | 34.60 | 26.00 |
Pranav Ambaselkar | 36.55 | 27.94 |
Sekh Tarik Anwar | 28.33 | 21.24 |
Average | 65.16 | 48.43 |
Key Insight: The resolution amount (₹55.51 crores) aligns closer to the average liquidation value, ensuring creditor recovery while prioritizing revival.
Purulia Metal Casting was admitted into Corporate Insolvency Resolution Process (CIRP) in October 2023 by Subhadra Commercial Pvt Ltd. Pratim Bayal was appointed as the Resolution Professional in the case. Following several rounds of bidding and negotiations, DD International emerged as the highest bidder (H1) in July 2024. After final revisions and approvals, the CoC voted in favour of the plan during an e-voting process conducted in September 2024.
Judicial Observations:
The tribunal emphasized that the resolution plan meets the feasibility and viability standards mandated by the IBC. It also underscored the need for the resolution applicant to adhere to statutory compliance and implement the plan effectively within a year. Reliefs and waivers sought under the resolution plan were reviewed and granted where applicable.
Also See: NCLT approves Aspect Global Ventures resolution plan for Rite Builtec