NCLT Delhi Approves ₹135.39 Crore Resolution Plan For Mastana Foods

The Delhi bench of the National Company Law Tribunal (NCLT) has approved a resolution plan worth ₹135.39 crore submitted by a consortium of HR Commercials Pvt. Ltd. and Crown Steels for Mastana Foods Pvt. Ltd.

A bench of President Anupinder Singh Grewal and Technical Member Ravindra Chaturvedi observed that the adjudicating authority cannot interfere with the commercial wisdom of the Committee of Creditors (CoC) so long as the resolution plan complies with the Insolvency and Bankruptcy Code.

Mastana Foods, incorporated in 1999, was engaged in the manufacture, export, supply and retail of rice. The company was admitted into the Corporate Insolvency Resolution Process (CIRP) on September 18, 2019, on a petition filed by the State Bank of India (SBI).

Over the course of the CIRP, the Committee of Creditors (CoC) held 29 meetings and issued multiple invitations for resolution plans. A fresh Form G issued in December 2024 attracted 14 expressions of interest, resulting in eight resolution plans.

An e-bidding process held on April 15, 2025, saw the HR Commercials–Crown Steels consortium emerge as the top-ranked applicant. The consortium later enhanced its offer to ₹135.39 crore and secured the highest net present value of ₹127.52 crore.

On July 15, 2025, SBI, the sole secured financial creditor with 100% voting share in the CoC, approved the resolution plan.

Under the approved plan, ₹30 lakh has been earmarked towards CIRP costs and ₹15.59 lakh towards EPFO dues. SBI will receive ₹127.30 crore in three tranches over 270 days. The plan also provides payments to operational creditors, including ₹7.38 crore to the Excise Department and separate payments to the Income Tax Department, Uttar Haryana Bijli Vitran Nigam Ltd., Bankey Bihari Packaging Pvt. Ltd. and other creditors.

The tribunal held that the plan complied with the requirements of the Code and approved its implementation within 270 days. It clarified that any reliefs, concessions and exemptions sought by the successful resolution applicant would remain subject to applicable laws and approvals from competent authorities and would not automatically flow from approval of the resolution plan.