NCLT Mumbai upheld a resolution plan for Zicom Electronics with 75.46% CoC approval after reconsideration of valuation and feasibility. The tribunal found the revised plan compliant with IBC requirements and in the best interest of stakeholders.
CoC’s 75.46% Approval Upheld After Reconsideration: NCLT Mumbai
The National Company Law Tribunal (NCLT), Mumbai, has approved the resolution plan submitted by Zicom Electronics Limited under the Insolvency and Bankruptcy Code, 2016, noting that the Committee of Creditors (CoC) had reconsidered key aspects including valuation, feasibility, and implementation strategy. The CoC had approved the plan with a 75.46% voting share, satisfying the statutory threshold under Section 30(4).
The tribunal observed that the resolution applicant had adequately addressed deficiencies previously highlighted, particularly concerning financial viability and operational continuity. The revised plan included improved timelines for implementation and assurances of capital infusion.
"The resolution plan reflects commercial wisdom of the CoC and is in the best interest of all stakeholders,"noted the bench, rejecting objections on procedural grounds and affirming the primacy of CoC decisions in due course.
Practitioners must ensure that resolution plans, especially those reconsidered by the CoC, comprehensively respond to prior observations to withstand judicial scrutiny. This order reinforces the deference tribunals afford to CoC's commercial judgment, provided due process is followed and material concerns are addressed.
Citations
- Insolvency and Bankruptcy Code, 2016, Section 30(4)
