NCLAT Dismisses Rolta Employees' Appeal Challenging Resolution Plan Payout

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently dismissed an appeal filed by former employees of Rolta India Ltd challenging the approval of the company's resolution plan, holding that the payout made to them complied with the terms recorded by the National Company Law Tribunal (NCLT) regarding payment of their dues.

A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra noted that the NCLT had recorded that the resolution plan would provide payment to employees equal to the higher of (i) twelve months' salary entitlement or (ii) the percentage payable to unsecured financial creditors.

The appellate tribunal found that employees had received more than the percentage payable to unsecured financial creditors under the resolution plan.

“Unsecured financial creditors are receiving 0.96% of their claim whereas according to own case of the Appellant they are receiving more than above, thus, the pay-out of the employees is more than the pay-out of the unsecured financial creditors. Hence, pay-out is in conformity that the order dated 05.12.2025 recorded by the Adjudicating Authority,” the bench observed.

The appeal arose from an order of the NCLT Mumbai bench dated December 15, 2025 approving the resolution plan of Rolta India Ltd. The company's Corporate Insolvency Resolution Process began on January 19, 2023. The resolution plan submitted by Ashdan Properties Private Limited was approved by the committee of creditors with 100% voting share and later placed before the NCLT for approval.

Before the plan was approved, some employees filed an intervention petition regarding payment of their dues. On December 5, 2025, the tribunal recorded a statement made on instructions from the resolution professional that the resolution plan would provide payment to employees equal to the higher of (i) twelve months' salary entitlement or (ii) the percentage payable to unsecured financial creditors. The intervention petition was disposed of on that basis.

After the plan was approved, the employees approached the appellate tribunal. They argued that the payout made to them violated the statement recorded by the NCLT. According to them, they received only a fraction of their twelve months' salary entitlement. Appellant No.1 received 9.22%, while Appellant No.4 received 9.69%.

The resolution professional opposed the plea. It argued that unsecured financial creditors were receiving only 0.96% of their admitted claims under the plan, whereas employees were receiving more than that percentage. The respondents also pointed out that the liquidation value of operational creditors, including employees, was nil.

The tribunal accepted this contention. It noted that the resolution plan earmarked Rs 1 crore towards employees' dues and that the liquidation value of operational creditors in the event of liquidation was nil.

"Total amount for the employees being earmarked is Rs.1 Crore by the Resolution Applicant whereas as per the entitlement of operational creditors/ employees in event of liquidation, their liquidation value being nil, the pay-out to the employees is in accordance with Section 30(2)(b). We thus, do not find any ground in this Appeal to interfere with the impugned order approving the Resolution Plan” the bench observed.

Holding that employees had received more than the percentage payable to unsecured financial creditors and that the plan also satisfied the minimum requirement under Section 30(2)(b) of the Insolvency and Bankruptcy Code, the appellate tribunal found no merit in the appeal and dismissed it.