NCLT Gives Nod to ₹3.4 Crore Resolution Plan for Steadfast Shipping

NCLT Gives Nod to ₹3.4 Crore Resolution Plan for Steadfast Shipping

Introduction

The National Company Law Tribunal (NCLT), Mumbai Bench-I, has approved a resolution plan worth ₹3.4 crore submitted by M/s Priyam Projects (I) Pvt. Ltd. for the corporate debtor M/s Steadfast Shipping Pvt. Ltd., a ship leasing company.

Factual Background

The Corporate Insolvency Resolution Process (CIRP) against Steadfast Shipping was initiated on November 27, 2024, based on a Section 7 petition filed by Punjab National Bank (International) Limited, the sole financial creditor.

Procedural Background

The Resolution Professional (RP) filed an application under Sections 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking approval of the resolution plan. The plan was approved by the Committee of Creditors (CoC) with 100% assent.

Issues

1. Approval of Resolution Plan: Whether the resolution plan meets the requirements of Section 30(2) of the IBC and the relevant CIRP Regulations.

Contentions of the Parties

Resolution Professional: The plan aligns with the requirements of Section 30(2) of the IBC and the relevant CIRP Regulations. The resolution applicant has furnished a performance security of ₹34 lakh.

Reasoning and Analysis

The Bench of Sushil Mahadeorao Kochey (Judicial Member) and Prabhat Kumar (Technical Member) examined the plan and observed that the plan value of ₹3.4 crore exceeded the actual liquidation value of ₹3.24 crore. The Tribunal noted that the plan provided for payment of ₹25 lakh towards CIRP costs and ₹2.3 crore to the secured financial creditor within 60 days.

Decision

The NCLT approved the resolution plan, directing the applicant to comply with the stipulated timelines and implementation under statutory supervision. The Tribunal clarified that any reliefs or waivers sought in the plan would remain subject to statutory scrutiny by the authorities.

Implications

The judgment highlights the importance of ensuring compliance with statutory requirements in resolution plans.

In this case the applicant was represented by Ms. Mily Ghoshal and Ms. Sophia Hussain, Advocates.