NCLT approved Hind Agro’s ₹95 crore resolution plan, ruling that investments for future business revival cannot be included in the resolution plan value.
Resolution Plan Valuation Principles
The National Company Law Tribunal (NCLT) has approved Hind Agro’s resolution plan worth ₹95 crore but has clarified that future business revival investments should not be counted as part of the resolution plan value. This ruling provides vital direction on what constitutes valid assets in insolvency proceedings.
The Tribunal noted that the valuation should solely focus on tangible assets and liabilities existing at the time of the resolution plan's approval. Stating that
"Investment in future business revival does not translate to realizable value during the resolution process,"the NCLT emphasizes the necessity of adhering to material valuations during insolvency resolution.
This ruling is significant for insolvency practitioners as it delineates clear boundaries regarding what can be included in resolution plans, helping to set realistic expectations for stakeholders involved in the process. Advisors must ensure that plans submitted reflect accurate and realizable financial values.
Citations
- In re: Hind Agro (2026) NCLT
