NCLT clears Innopark’s ₹131.9-crore plan for Baron Infotech, creditors to get full admitted dues

The Hyderabad bench of the National Company Law Tribunal (NCLT) has approved Innopark (India) Private Limited’s resolution plan for Baron Infotech Limited. Under the plan, all creditors of the listed company will recover 100% of their admitted claims of ₹2.47 crore.

The bench, comprising Rajeev Bhardwaj (Member, Judicial) and Sanjay Puri (Member, Technical), approved the plan dated April 11, 2026 through an order dated September 8. It held that the plan met the requirements of Section 30(2) of the Insolvency and Bankruptcy Code (IBC) and that Innopark was eligible under Section 29A.

The approval ends a corporate insolvency resolution process that began on May 10, 2024. The tribunal had admitted Baron Infotech into insolvency that day on a petition by financial creditor Avantine Software Private Limited, which went on to become the sole member of the committee of creditors (CoC) with 100% voting share.

Creditors paid in full, partly in shares

Under the plan, creditors and insolvency costs will be paid ₹3.59 crore in all, of which ₹2.69 crore is cash payable within five working days of the tribunal’s order.

The creditors will be paid as follows:

• Avantine Software: its admitted claim of ₹1.29 crore will be settled with ₹38.54 lakh in cash, about 30% of the claim, and ₹90 lakh in equity shares allotted at ₹10 each within 30 days.
• Related-party financial creditor: Vishnu Vardhan Reddy’s claim of ₹25.49 lakh will be paid entirely in cash.
• Operational creditors: their claims of ₹92.53 lakh will be paid entirely in cash.
• CIRP costs: the ₹1.12 crore in insolvency process costs will be paid in full.

Existing non-promoter public shareholders will be allotted equity worth ₹44.65 lakh.

₹131.9 crore outlay, plus ₹100 crore credit line

The plan’s total financial outlay of ₹131.91 crore is far larger than the creditors’ dues. The bulk of it is meant to revive the company, and it breaks down as follows:

• Working-capital debt: ₹79 crore, to be infused within six months.
• Fresh equity: ₹9.38 crore for capital expenditure and working capital.
• Strategic investor: ₹13.30 crore for public shareholding, to come in within 30 days.
• PurpleTalk India merger: ₹26.20 crore in bank balances, fixed deposits and investments held by PurpleTalk India Private Limited. It is described in the plan as the transferor company, and the funds become available on its merger.

Innopark has also offered an additional working-capital limit of ₹100 crore, which can be drawn on demand within five working days. It says the funds will come from internal accruals, investments or money raised “within its network”.

A contested second round

This is the second resolution plan for Baron Infotech to come before the tribunal. In the first round, 40 expressions of interest were received and 15 plans were submitted. On January 21, 2025, the CoC approved a plan and scheme of arrangement submitted by Vivek Kumar Ratakonda.

The tribunal dismissed that plan on December 9, 2025. It directed the CoC to issue a fresh request for resolution plans and replaced the resolution professional with CS Dr Ahalada Rao Vummenthala. The order does not state why the earlier plan was rejected.

Four applicants bid in the fresh round: Ratakonda, Innopark, Resurgent Advisors Ventures Private Limited and Evervolt Green Energy Private Limited.

When the resolution professional asked the bidders about collateral for the funds they proposed to bring in, their responses differed:

• Innopark offered collateral equal to 125% of its working-capital commitment.
• Resurgent Advisors said it would fund payments from internal accruals and unsecured loans from sister concerns, friends or relatives, and that no security was needed.
• Evervolt did not respond on collateral. It had separately asked for a challenge mechanism.
• Ratakonda said the resolution professional’s concerns rested on “an incomplete and unduly narrow reading” of his plan. He later sought permission to submit a revised plan.

The CoC asked the resolution professional to examine Evervolt’s and Ratakonda’s requests. Soon afterwards, at an adjourned meeting on April 25, 2026, it approved Innopark’s plan with 100% votes. The order does not record how those two requests were disposed of.

In its directions, the tribunal said the plan’s approval would not amount to a waiver of statutory liabilities, citing the Supreme Court’s 2021 ruling in Ghanashyam Mishra and Sons. Any reliefs not specifically granted must be sought from the authorities concerned. Innopark’s performance bank guarantee will remain in force until the plan is fully implemented, and the Section 14 moratorium has ceased.

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