NCLT Mumbai approves ₹44.5 crore resolution plan for Vidhant Realty
The Mumbai Bench of the National Company Law Tribunal (NCLT) has approved the resolution plan submitted by Cubical Realty Pvt Ltd for Vidhant Realty Pvt Ltd, bringing an end to its corporate insolvency resolution process (CIRP). The plan was cleared with 100% approval from the Committee of Creditors (CoC).
The insolvency proceedings were initiated after Kausar Textile Pvt Ltd, a financial creditor, filed a Section 7 petition, leading to the admission of CIRP on September 25, 2023. Modilal Dhanraj Pamecha was appointed as the Resolution Professional (RP). Following a competitive bidding process, Cubical Realty was selected as the Successful Resolution Applicant (SRA).
Key Financials and Payouts
- Total Creditors’ Claim: ₹983.91 crore
- Resolution Plan Value: ₹44.50 crore (4.52% of total claims)
- Financial Creditors’ Admitted Claims: ₹899.91 crore
- Payout to Financial Creditors: ₹44 crore, payable over 1,800 days
- Operational Creditors’ Admitted Claims (including statutory dues): ₹83.66 crore
- Payout to Operational Creditors: ₹7 lakh
- CIRP Costs: Fully covered at ₹33.38 lakh
- Funding Sources: The SRA plans to finance the acquisition through a combination of internal accruals, equity investment, and financing from Topfin Investment Pvt Ltd, which has committed capital for the transaction.
Regulatory and Judicial Observations
The tribunal confirmed that the resolution plan complies with Sections 30(2) and 31 of the Insolvency and Bankruptcy Code (IBC), 2016, ensuring priority payments to operational creditors and full settlement of CIRP costs. However, the bench raised concerns over corporate guarantees admitted without prior disclosure as contingent liabilities in financial statements. The matter has been referred to the Insolvency and Bankruptcy Board of India (IBBI) for review.
With the approval of the resolution plan, the moratorium under Section 14 of IBC ceases to be in effect, paving the way for the implementation of the plan. The Resolution Professional will oversee the execution and submit periodic updates to the NCLT.
Vidhant Realty, a Mumbai-based company, is involved in real estate activities with own or leased property. It is engaged in buying, selling, renting and operating of self-owned or leased real estate such as apartment building and dwellings, non-residential buildings, developing and subdividing real estate into lots etc. It also develops and sells land and cemetery lots, operating of apartment hotels and residential mobile home sites.
Vidhant Realty was dragged to insolvency court Kausar Textile Pvt. Ltd in September 2023 for defaulting on a payment of Rs 478 crore.
Also See: NCLT approves Mangalam Multiplex resolution plan for Varutha Developers
