NCLT clears Rs 21-crore Netscape consortium plan for Juhi Industries; lenders take 97.5% haircut

The Kolkata bench of the National Company Law Tribunal (NCLT) has approved a Rs 21-crore resolution plan for Juhi Industries Private Limited. The plan was submitted by a consortium of Ranchi-based Netscape Ventures Private Limited, Ashish Agarwal and Gopi Kishan Agarwal. Creditors will take a haircut of 97.46% on admitted claims of Rs 827.20 crore.

The order was pronounced on August 25 by a bench of Labh Singh (judicial member) and Rekha Kantilal Shah (technical member). The plan pays all creditors, including corporate insolvency resolution process (CIRP) costs, within seven days of a “Record Date.” The Record Date falls 45 business days after the tribunal’s approval. The money breaks down as follows:

• Financial creditors: Rs 2,070.72 lakh against admitted claims of Rs 626.96 crore.
• Government dues: Rs 24.28 lakh against Rs 198.78 crore.
• Other operational creditors: Rs 5 lakh against Rs 1.45 crore.

The committee of creditors (CoC) has two members. Bank of Baroda holds 58.05% of the vote on an admitted claim of Rs 363.92 crore. Canara Bank holds 41.95% on Rs 263.04 crore.

The plan amount is 90.26% of the company’s fair value of Rs 23.26 crore and 120.99% of its liquidation value of Rs 17.36 crore.

Two rounds, two bidders

Canara Bank filed the insolvency petition under Section 7 of the Insolvency and Bankruptcy Code (IBC). The tribunal admitted the company into CIRP on January 6, 2025, and appointed Anish Agarwal as interim resolution professional. He was later confirmed as resolution professional.

The first invitation for expressions of interest (Form G) drew no resolution plan by the June 5, 2025 deadline, so the CoC re-issued it. In the second round, two plans came in. One was from Orissa Alloy Steel Private Limited of the Rashmi Group. The other was from the Netscape consortium.

After revised financial offers, the plans went to e-voting from October 13 to December 3, 2025. The CoC approved the Netscape consortium’s revised plan, dated September 26, 2025, with 100% of the vote. The consortium deposited a performance security of Rs 2.10 crore.

From trader to manufacturer

The order describes Netscape Ventures as a trader in sponge iron, billets and coal with about 13 years in the business, mainly in eastern India. It says the consortium intends to move from trading into integrated manufacturing. According to the order, Juhi Industries’ operations had been shut because of capex and working-capital constraints.

The plan proposes to run the company as a going concern. However, it reserves an “unconditional right” for the bidder to use the company’s assets for an alternate project if the revival fails. The CoC minutes record that members saw no violation of law in that clause, citing earlier tribunal precedents.

The certified net worth figures on record are:

• Ashish Agarwal: Rs 3.81 crore
• Gopi Kishan Agarwal: Rs 3.26 crore
• Netscape Ventures: Rs 5.54 crore

The plan says it will be funded from the consortium’s existing resources and its associates, with bank borrowings if required. Existing equity will be cancelled without payout, and the consortium will hold 100% of the restructured company.

Tribunal sought clarifications

On July 13, 2026, the tribunal sought clarifications on the plan. The CoC approved the bidder’s responses at its 15th meeting, again with 100% of the vote. Under the clarifications, the bidder:

• withdrew a clause that would have let it acquire assets “whether or not mentioned” in the information memorandum;
• confirmed that no undisclosed person will take ownership or control of the company;
• dropped a performance-linked incentive for the resolution professional, keeping only a fixed fee of Rs 3 lakh a month;
• shortened the deadline for reconstituting the board from 30 days to seven days after the Record Date.

Tax losses and reliefs

The company has carried-forward business losses of Rs 324.16 crore and unabsorbed depreciation of Rs 20.55 crore. The tribunal said these can be carried forward only in line with the Income Tax Act, and that the tax department is free to examine them.

The plan sought several reliefs that fall outside the tribunal’s powers. These included reclassifying some land parcels from “forest land” in revenue records, waiving lease dues and exempting stamp duty. The bench left these to the authorities concerned, relying on the Supreme Court’s ruling in Embassy Property Developments.

The tribunal also said any personal guarantees given for the company’s loans can be invoked. A Section 19(2) application filed by the resolution professional against Mithlesh Pandey and others was disposed of as infructuous.

Also See: NCLT approves Hynite Farms’ ₹138.7-crore plan for stalled Greater Noida project Manorath