NCLT Mumbai Approves Sunsai Media's Resolution Plan For Vin Semiconductors With ₹5.69 Crore Revival Package

The Mumbai Bench of the National Company Law Tribunal (NCLT) on 8 June approved the resolution plan submitted by Sunsai Media Developers Pvt Ltd for Vin Semiconductors Pvt Ltd, finding that it complied with the Insolvency and Bankruptcy Code and CIRP Regulations.

Judicial Member Ashish Kalia and Technical Member Charanjeet Singh Gulati accepted the Committee of Creditors' (CoC) decision, which approved the plan with a 99.43% voting share, paving the way for the company's revival through a resolution package of approximately Rs 5.69 crore. The Bench observed:

“In view of the law laid down by Hon'ble Supreme Court, the commercial wisdom of the COC is to be given paramount importance for approval / rejection of the resolution plan. As the Resolution Plan meets the requirements of the Code and the IBBI (CIRP) Regulations, 2016 the same needs to be approved. Accordingly, the Resolution Plan is approved.”

Axis Bank initiated the Corporate Insolvency Resolution Process (CIRP) against Vin Semiconductors on 10 November 2023 by filing a petition before the Tribunal. The Tribunal constituted the CoC in December 2023, which primarily included Axis Bank and Central Bank of India, with admitted secured financial debt of about Rs 28.07 crore.

During the CIRP, ten prospective resolution applicants showed interest, and four submitted resolution plans. After multiple rounds of negotiations and revisions, Sunsai Media Developers secured approval as the successful resolution applicant.

The approved plan allocates Rs 45 lakh towards CIRP costs, Rs 5.10 crore to secured financial creditors, Rs 1 lakh to unsecured financial creditors, and payments to operational creditors, employees, and statutory authorities. The total admitted claims stood at approximately Rs 45.65 crore, while the plan provides aggregate payouts of Rs 5.24 crore, resulting in an estimated recovery of about 11.48%.

The Tribunal also records that a revenue record dispute relating to the company's property at Bhiwandi remains pending before the Bombay High Court. However, the successful resolution applicant files an affidavit confirming that it implements the plan unconditionally, irrespective of the outcome of the pending proceedings.

Accordingly, the NCLT approves the resolution plan and directs its implementation through a monitoring committee comprising representatives of secured creditors, the resolution applicant, and the resolution professional.