NCLT Cuttack Calls RPs Alteration Of Creditors Claim 'Gross Dereliction' Approves Goyal Energy Resolution Plan

The National Company Law Tribunal (NCLT) at Cuttack has recently approved a resolution plan worth ₹79 crore for Goyal Energy and Steel Limited, submitted by Mumbai-based Nakshatra Asset Ventures Ltd.

While approving the plan, the tribunal observed that a resolution professional cannot alter the amount claimed by a creditor in Form H (the statutory compliance certificate) without a revised claim from that creditor.

The bench of Judicial Member Cheekati Radha Krishna and Technical Member Banwari Lal Meena observed that Resolution Professional Ashish Arjunkumar Rathi had reduced the claim amount of Chhattisgarh State Power Distribution Company Limited (CSPDCL) in Form H even though the creditor had not filed a revised claim.

"This is a gross dereliction on part of RP as he has no authority to change the Claimed Amount by a Creditor while filing the Statutory Form-H especially when from documents on record it is completely clear that the Amount claimed by CSPDCL is higher that what has been stated in Form-H" However, it is also noted since the amount proposed in the Plan for Operational Credltors is very small in respect to the claims feceived or admitted it is not causing any prejudice to CSPDCL.", the tribunal observed.

The tribunal, however, observed that the amount proposed under the plan for operational creditors was very small in comparison with the claims received or admitted, and, therefore, it was not causing any prejudice to CSPDCL.

Goyal Energy and Steel Limited was admitted into the corporate insolvency resolution process in October 2024 after defaulting on dues of about ₹103.44 crore. Punjab National Bank initiated the insolvency proceedings and held a 60.7% voting share in the committee of creditors, while Union Bank held the remaining 39.3%.

The committee of creditors approved Nakshatra Asset Ventures Ltd.'s resolution plan with a 100% voting share. The plan provides for a total outlay of ₹79 crore, including ₹74.87 crore for secured financial creditors, ₹2 crore towards insolvency resolution process costs and specified payments to operational creditors. The tribunal recorded that the plan would result in a recovery of about 28.05% of the admitted claims.

After examining the resolution plan, the tribunal held that it complied with the requirements of the Insolvency and Bankruptcy Code and approved it.

For Applicant: Advocate Subham Agarwal