NCLT approves Rashmi Metaliks ₹75 crore resolution plan for Jagdamba Industries
The National Company Law Tribunal (NCLT) Kolkata Bench has formally approved the resolution plan submitted by Rashmi Metaliks Limited for the revival of Jagdamba Industries Limited. The decision, pronounced on November 24, 2025, marks the conclusion of a Corporate Insolvency Resolution Process (CIRP) that began in August 2023.
Jagadamba Industries operates a structural rolling mill in Durgapur, West Bengal. It is a secondary manufacturer of steel products, including angles, channels, beams, and value-added long products. Rashmi Metaliks is an integrated steel manufacturing company and a key entity within the Rashmi Group.
Financial breakdown of the revitalization
The approved plan carries a total value of ₹75 crore. According to the order passed by Member (Technical) Siddharth Mishra and Member (Judicial) Bidisha Banerjee, the funds will be utilized as follows:
- ₹38 crore will be allocated for the payment of admitted claims to various stakeholders.
- ₹37 crore is earmarked for capital expenditure (Capex) to revive the plant, recommence operations, and provide working capital.
Settlement of Claims (Amounts in ₹ Crore)
| Category of Creditor | Amount of Claim | Claim Admitted | Amount Provided in Plan |
| CIRP Cost | Not Specified | Not Specified | 1.50 |
| Secured Financial Creditor | 353.16 | 352.42 | 35.65 |
| Unsecured Financial Creditor | 0.50 | 0.50 | 0.10 |
| Operational Creditors (Excluding workmen, employees, & statutory dues) | 2.37 | 2.24 | 0.10 |
| Other Operational Creditors | 33.60 | 1.16 | 0.65 |
| Workmen and Employee Dues | 0.00 | 0.00 | 0.00 |
| Government Dues | 0.00 | 0.00 | 0.00 |
| Working Capital & Capital Infusion | N/A | N/A | 37.00 |
| TOTAL | 389.14 | 356.32 | 75.00 |
Key Highlights of the CIRP
The resolution professional (RP), Aditya Kumar Tibrewal, initiated the process following an admission order dated August 22, 2023.
- CoC Approval: The Committee of Creditors (CoC) approved the plan with an 80.96% majority during its 14th meeting held on September 21, 2024.
- Valuation: The average fair value of the corporate debtor was assessed at approximately ₹69.76 crore, while the liquidation value stood at ₹54.09 crore.
- Security: Rashmi Metaliks has already furnished a bank guarantee of ₹1 crore and an Earnest Money Deposit (EMD) of ₹25 lakh.
Legal directives and next steps
The NCLT clarified that Successful Resolution Applicant (SRA) Rashmi Metaliks will take over the company on a “clean slate”. All past criminal and civil liabilities of the company, prior to the CIRP commencement, are now extinguished for the new management. However, the tribunal noted that the old management and personal guarantors remain liable for any prior offences or guarantees, directing financial creditors to invoke these personal guarantees where necessary.
The moratorium previously imposed on Jagdamba Industries has now ceased, and the RP has been directed to hand over all records and premises to Rashmi Metaliks immediately.
Also see: PSU consortium led by MAHAGENCO, NTPC to take over Sinnar Thermal Power for Rs 3,800 crore
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