The National Company Law Tribunal (NCLT) in Hyderabad, presided over by Justice Telaprolu Rajani (Judicial Member) and Shri Charan Singh (Technical Member), has granted its approval to the Resolution Plan submitted by a consortium led by B. Subba Reddy and C. Venkateswara Reddy for Indu Projects Ltd. This development stems from the proceedings of the petition filed by Bank of India against Indu Projects Ltd., wherein the NCLT has determined the viability of the proposed resolution.
Indu Projects Ltd., a Hyderabad-based company specializing in infrastructure construction services, engages in the design, construction, and development of various projects including electricity transmission and distribution, roads, railways, pipelines, industrial buildings and structures, airports, irrigation, power generation, coal mining, and solar energy.
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The petition filed by Bank of India, acting as the Financial Creditor, invoked Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate the Corporate Insolvency Resolution Process (CIRP) against Indu Projects Ltd.
On 25th February 2019, the NCLT accepted the petition, initiating the CIRP against Indu Projects Ltd. Subsequently, a consortium led by Mr. B. Subba Reddy and Mr. C. Venkateswara Reddy, recognized as the Successful Resolution Applicant (SRA), proposed a Resolution Plan that garnered unanimous approval from the Committee of Creditors (CoC). Consequently, the Resolution Professional filed an application under Section 30(6) of the IBC before the NCLT, seeking the tribunal’s endorsement of the Resolution Plan.
The approved Resolution Plan, valued at Rs. 501 Crores, outlines the proposed settlements for the various creditors. The Financial Creditors are set to receive Rs. 394 Crores, representing a significant portion of their admitted claim of Rs. 3890 Crores. The Workmen and Employees of the Corporate Debtor are entitled to Rs. 1 Crore, which is allocated against their admitted claim of Rs. 4.21 Crores. The Operational Creditors, excluding workmen and employees, will be paid Rs. 4.9 Crores compared to their admitted claim of Rs. 178 Crores. Additionally, the Government will receive Rs. 18,432, covering their admitted dues of Rs. 1.82 Lakhs. The Related Party of the Corporate Debtor will not receive any payment under the approved Resolution Plan.
With the NCLT’s endorsement, the Resolution Plan put forth by the consortium led by B. Subba Reddy and C. Venkateswara Reddy marks a significant step towards the resolution of Indu Projects Ltd.’s insolvency case. The plan’s allocation of funds among the various creditors ensures a fair and balanced approach, reflecting the efforts to safeguard the interests of all stakeholders involved.
