NCLT Bengaluru Approves ₹17.25 Crore Resolution Plan For Dunlop Polymers

The Bengaluru bench of the National Company Law Tribunal (NCLT) has approved a ₹17.25 crore resolution plan for Dunlop Polymers Pvt. Ltd. The order brings an end to a corporate insolvency resolution process in which 1,673 days were excluded from the CIRP period.

The tribunal, comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada, approved the resolution plan submitted by Saikam Sivachaitanya after finding that it complied with the requirements of the Insolvency and Bankruptcy Code, 2016.

Dunlop Polymers Private Limited, incorporated in 2003, was admitted into the Corporate Insolvency Resolution Process (CIRP) on June 25, 2019, for default in repayment of debt amounting to ₹48.46 lakh.

The insolvency proceedings began on an application filed by Miller Traders Pvt. Ltd.

The process, however, remained in limbo for several years. A stay by the Karnataka High Court, followed by the death of the erstwhile interim resolution professional during the COVID-19 pandemic, led to the exclusion of 1,673 days from the CIRP period.

Once the process resumed, the committee of creditors (CoC), comprising Canara Bank and Swapanli Trade and Commerce Pvt. Ltd., approved the resolution plan with a 97.94% voting share in June 2024.

Under the approved plan, creditors with admitted claims aggregating to ₹101.94 crore will receive ₹16.85 crore, while the total resolution plan outlay is ₹17.25 crore, including ₹40 lakh towards CIRP costs.

"The Resolution Plan marked as Annexure B, submitted by Mr. Saikam Sivachaitanya, in respect of the Corporate Debtor, is hereby approved. The realisable amount under the Plan is INR 17.25 crores, including INR 40 Lacs as CIRP cost," the tribunal observed.

In addition to the ₹17.25 crore resolution amount, the successful resolution applicant (SRA) will infuse ₹6 crore towards operational investment and ₹3 crore towards working capital.

The tribunal clarified that any reliefs, concessions, or exemptions sought by the successful resolution applicant would be subject to applicable laws and approvals from the competent statutory authorities.

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