NCLT approves ₹145.26 crore resolution plan for Indo Global Soft

The National Company Law Tribunal (NCLT), Mumbai Bench, has approved a resolution plan worth ₹145.26 crore for the insolvent Indo Global Soft Solutions and Technologies Private Limited, bringing closure to a corporate insolvency resolution process (CIRP) that spanned over three years and faced multiple legal hurdles.

The plan, submitted by Ashdan Properties Private Limited, a stressed asset platform part of the Solitaire Group, was approved by the Committee of Creditors (CoC) with a 100% voting share. The tribunal’s order, pronounced by a bench comprising Member (Technical) Shri Anil Raj Chellan and Member (Judicial) Shri K. R. Saji Kumar, paves the way for the revival of the corporate debtor.

A Long-Drawn Resolution Journey

The CIRP was initiated on April 12, 2022, on an application filed by Yes Bank Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC). The process witnessed two rounds of invitation for Expression of Interest (EoI). The first round in 2022 yielded two commercially unsatisfactory plans, prompting a fresh round in January 2023.

Five resolution plans were received in the second round. After extensive negotiations and deliberations across multiple CoC meetings, the plan from Ashdan Properties was initially approved with an 80% voting share in August 2023. However, its path to final approval was obstructed by legal challenges regarding the classification of creditors.

A key intervention came from Union Bank of India, which contested the secured creditor status of J.C. Flowers Asset Reconstruction Pvt. Ltd. (JCF ARC). The NCLT’s order in October 2024, declaring JCF ARC as an unsecured financial creditor, necessitated a reconsideration of the resolution plan by the CoC. This led to a stay on voting, obtained by JCF ARC at the National Company Law Appellate Tribunal (NCLAT), which was later vacated in May 2025.

The process also saw changes in Resolution Professionals, with Mr. Shailen Shah, Mr. Anuj Jain, and finally Mr. Ravi Sethia overseeing the CIRP at different stages.

Financial Breakdown of the Approved Plan

The approved financial proposal outlines the following settlement for admitted claims:

• Secured Financial Creditors (Admitted: ~₹172.46 Cr): To receive ₹130 crore. Union Bank of India is the sole secured creditor.
• Unsecured Financial Creditors (Admitted: ~₹690.78 Cr): To receive ₹15.12 crore. This includes JCF ARC and Samman Capital Limited.
• Operational Creditors (Admitted: ~₹19.87 Cr): To receive ₹12 lakh on a pro-rata basis.
• Other Creditors (Admitted: ₹12 Cr): To receive ₹2 lakh on a pro-rata basis.
• CIRP Costs: To be paid in full, primarily from the corporate debtor’s cash balance or the financial creditors’ payment.

The total resolution amount is ₹145.26 crore. Ashdan Properties has already deposited ₹14.77 crore (10% of the plan consideration) as performance security.

Capital Restructuring and Implementation

The resolution plan involves a significant capital restructuring:

1. Ashdan’s wholly-owned subsidiary, Magnite Properties Private Limited, will be allotted 29.9 lakh equity shares (face value ₹10 each) for ₹2.99 crore, infusing fresh capital.
2. The unsustainable debt of the financial creditors—the portion of admitted claims not covered by the upfront cash payment—amounting to approximately ₹718.12 crore, will be converted into 10,000 non-voting, non-dividend bearing Class B equity shares issued at a high premium.
3. The entire existing share capital of the corporate debtor will be extinguished without any consideration.

The plan mandates strict implementation timelines, with the upfront payment and transfer of management required within seven days of the NCLT order approval date (T+7 days). A Monitoring Committee comprising representatives from the SRA, assenting financial creditors, and the RP will supervise the implementation until the closing date.

Tribunal’s Analysis and Final Order

The NCLT, in its order, referenced Supreme Court precedents in K. Sashidhar and Essar Steel, emphasizing that its judicial review is limited to ensuring the plan complies with Section 30(2) of the IBC and does not contravene the law. The tribunal found the plan compliant on all counts, including the eligibility of the SRA under Section 29A.

Key directives in the approval order include:

• The plan is binding on all stakeholders, and all claims not part of the plan stand extinguished.
• The moratorium under Section 14 of the IBC ceases immediately.
• The corporate debtor gets protection from prosecution for offences committed prior to CIRP under Section 32A.
• The Resolution Professional must supervise implementation and file quarterly status reports.

The tribunal also clarified that statutory obligations arising after the plan’s effective date, including tax liabilities and license renewals, must be dealt with by the concerned authorities, recommending a sympathetic consideration for the revival of the company.

With this approval, the protracted insolvency saga of Indo Global Soft Solutions concludes, aiming to maximize asset value and provide a structured exit for its creditors.

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