ACME Cleantech buys another Anil Ambani-promoted company Reliance Infrastructure Consulting & Engineers
The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the resolution plan submitted by Manoj Kumar Upadhyay of ACME Cleantech for erstwhile Anil Ambani-promoted Reliance Infrastructure Consulting & Engineers Private Limited (Corporate Debtor). The Rs 1.05-crore plan, which was unanimously approved by the Committee of Creditors (CoC), aims to resolve the corporate insolvency of the debt-ridden company.
The resolution plan, dated December 30, 2023, and amended on February 20, 2024, along with an addendum dated March 26, 2024, was approved under Section 31(1) of the Insolvency and Bankruptcy Code, 2016 (IBC).
Background:
The Corporate Insolvency Resolution Process (CIRP) against Reliance Infrastructure Consulting & Engineers Pvt. Ltd. was initiated on September 8, 2023, following a petition filed by Axis Trustee Services Limited under Section 7 of the IBC. The company, which owns two wind energy generators in Tamil Nadu, had failed to redeem debentures worth ₹496.36 crore issued to Axis Trustee Services Limited.
Rohit Ramesh Mehra was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). The CoC, comprising Axis Trustee Services Limited (48.89% voting share) and J.C. Flowers Asset Reconstruction Company Pvt. Ltd. (51.11% voting share), approved the resolution plan submitted by Manoj Kumar Upadhyay, the founder of ACME Group, with a 100% voting share.
Key Features of the Resolution Plan:
- The resolution plan proposes a total payment of ₹1.05 crore to settle claims worth ₹1,051.07 crore, which is approximately 0.10% of the admitted claims.
- Secured financial creditors will receive ₹83.20 lakh, while unsecured financial creditors will get ₹20.80 lakh.
- Operational creditors (other than employees and government dues) will receive ₹50,000, and no payment is proposed for other creditors.
- The plan also includes the infusion of ₹3.50 crore as upfront cash payment by the Successful Resolution Applicant (SRA) to cover unpaid CIRP costs, operational creditors’ dues, and transaction costs.
Valuation and Claims:
The Corporate Debtor’s assets were valued at an average fair value of ₹4.71 crore and a liquidation value of ₹1.69 crore. The admitted claims totaled ₹1,051.07 crore, including ₹496.36 crore from secured financial creditors and ₹518.88 crore from unsecured financial creditors.
Clarificatory Addendum Rejected:
The SRA had filed a clarificatory addendum on November 8, 2024, proposing changes to the implementation structure, including the merger of the Corporate Debtor with ACME Cleantech Solutions Pvt. Ltd. instead of MKU Holdings Pvt. Ltd. However, the NCLT rejected the addendum, stating that it amounted to a modification of the resolution plan, which is not permissible under the IBC framework as per the Supreme Court’s ruling in Ebix Singapore Private Limited v. CoC of Educomp Solutions Limited & Anr.
Tribunal’s Observations:
The NCLT observed that the resolution plan complies with Section 30(2) of the IBC, which mandates payment of CIRP costs, operational creditors’ dues, and management of the Corporate Debtor’s affairs post-approval. The tribunal also noted that the CoC’s commercial wisdom in approving the plan should not be interfered with unless the plan violates the provisions of the IBC.
Also Read: Anil Ambani’s Reliance Big sold to ACME Group founder for Rs 3.5 crore
