NCLT Ahmedabad Approves ₹29 Crore Resolution Plan for Amul Industries, Rejects Workmen's Objections

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on 12 May approved the resolution plan submitted by a consortium led by Mr. Sandeep Vadodaria for Amul Industries Pvt. Ltd., holding it compliant with Sections 30(2) and 53 of the Insolvency and Bankruptcy Code, 2016.

Judicial Member Chitra Hankare and Technical Member Dr Velamur G. Venkata Chalapathy, approved the plan despite earlier rejection at the NCLT stage and subsequent remand by the National Company Law Appellate Tribunal (NCLAT).

The plan, valued at Rs 29 crore against admitted claims of Rs 161.49 crore, received 68.18% approval from the Committee of Creditors (CoC).

The insolvency process began on 8 April 2024 when the Tribunal admitted a Section 9 application filed by Sundram Fasteners Ltd. It appointed Niharika Maheshwari as Interim Resolution Professional, later replaced by Vinod Tarachand Agrawal.

The CoC comprised 19 financial creditors, of whom 14 were related parties without voting rights. Raj Radhe Finance Ltd., holding 68.18% voting share assigned from SBI, emerged as the decisive creditor in approving the plan.

During the Corporate Insolvency Resolution Process (CIRP), the Resolution Professional faced multiple obstacles, including sealed factory premises due to labour court recovery orders, allegations of fraudulent asset transfers requiring avoidance proceedings, and theft incidents at the corporate debtor's site.

Despite these challenges, the process attracted expressions of interest, but only one consortium led by Sandeep Vadodaria submitted a viable resolution plan and remained in contention.

The approved plan provides for an infusion of Rs 29 crore, including Rs 14 crore for working capital and repairs, and a performance security of Rs 1 crore furnished through a bank guarantee. It also proposes distribution of receivables worth Rs 34.65 crore among creditors in accordance with Section 53.

The plan establishes a monitoring committee comprising representatives of the successful resolution applicant, a secured financial creditor, and the Resolution Professional.

The NCLT had earlier rejected the plan in November 2025 for non-compliance with Section 30(2), particularly regarding treatment of state tax dues. The NCLAT later set aside that order and remanded the matter for fresh consideration.

Fresh objections came from the Saurashtra Majoor Mahajan Sangh, which represented workmen and alleged inequitable treatment and rejection of claims worth Rs 8.17 crore.

The Tribunal held that workmen would receive at least liquidation value under Section 53 and noted that EPFO dues had been fully provided for. It found no violation in the distribution mechanism and approved the plan.

Accordingly, the NCLT allowed the application, lifted the moratorium under Section 14, and directed handover of Amul Industries to the board nominated by the successful resolution applicant. It also discharged the Resolution Professional from duties.

For Applicants: Advocates Rashesh Sanjanwala, Lalit M Patel and Harshil L Patel