Ark Industries Private Limited

Total plan funding, as printed

Rs. 11,004,300 /-

Payout horizon as printed

T+90 days in accordance with the definition of Upfront Payment as set out on Page No. 5 of Resolution Plan

CIRP cost, as printed

Rs.25,00,000/-

Cirp cost treatment

"an amount of Rs.25,00,000/- has been earmarked under the Resolution Plan towards the CIRP costs and shall be paid in priority to all other payments. However, the said amount has not been included in the aforesaid table. In the event the actual CIRP costs are less than Rs.25,00,000/-, the unutilised balance shall be distributed among the financial creditors in proportion to their respective admitted claims. Conversely, if the actual CIRP costs exceed Rs.25,00,000/-, the amounts payable to the financial creditors shall stand reduced proportionately to the extent of such excess." (para 21, pp.7-8)

Performance security

15,00,000/-

Performance security instrument

cash

Earnest money deposit

Rs.5,00,000/- along with their respective EOIs and a further sum of Rs.10,00,000/- at the time of submission of their resolution plans; aggregate amount of Rs.15,00,000/- towards Earnest Money Deposit (EMD) per Resolution Applicant (para 10, p.3)

Units note

The stakeholder table (para 20) and the summary table (para 19) print absolute rupee figures in international (comma-3) grouping, e.g. Rs. 11,004,300/-; the narrative paragraphs print Indian lakh/crore grouping, e.g. Rs. 1,35,04,300/-, Rs.25,00,000/-. OCR/extraction has inserted stray spaces inside several figures (e.g. "Rs. 1,152,615 ,200/-", "Rs. 10, 44, 524"); figures are reproduced as printed.

The stakeholder table (para 20) and the summary table (para 19) print absolute rupee figures in international (comma-3) grouping, e.g. Rs. 11,004,300/-; the narrative paragraphs print Indian lakh/crore grouping, e.g. Rs. 1,35,04,300/-, Rs.25,00,000/-. OCR/extraction has inserted stray spaces inside several figures (e.g. "Rs. 1,152,615 ,200/-", "Rs. 10, 44, 524"); figures are reproduced as printed.

Body of order · 10 rows

1. Seq

   1

   Beneficiary

   CIRP costs

   Amount as printed

   Rs.25,00,000/-

   Timing as printed

   shall be paid in priority to all other payments (not included in the stakeholder table)

2. Seq

   2

   Beneficiary

   Secured Financial Creditors

   Amount as printed

   Rs. 10,896,763/-

   Timing as printed

   T+90 days in accordance with the definition of Upfront Payment as set out on Page No. 5 of Resolution Plan

3. Seq

   3

   Beneficiary

   Unsecured Financial Creditors

   Amount as printed

   Rs. 103,237/-

   Timing as printed

   T+90 days in accordance with the definition of Upfront payment as set out on Page No. 5 of Resolution Plan

4. Seq

   4

   Beneficiary

   Operational Creditors - (i) Government

   Amount as printed

   Rs. 2000/-

   Timing as printed

   T+90 days in accordance with the definition of Upfront payment as set out on Page No. 5 of Resolution Plan

5. Seq

   5

   Beneficiary

   Other Operational creditors - Posco International India Private Limited

   Amount as printed

   Rs. 2,249/-

   Timing as printed

   T+90 days in accordance with the definition of Upfront payment as set out on Page No. 5 of Resolution Plan

6. Seq

   6

   Beneficiary

   Other Operational creditors - Arya Ship Industries Company Private Limited

   Amount as printed

   Rs. 51/-

   Timing as printed

   T+90 days in accordance with the definition of Upfront payment as set out on Page No. 5 of Resolution Plan

Entity type

individual

Consortium members

1. Mr. Sanjay Punglia
2. Farmswipe Private Limited (person acting in concert / PAC)

Related party finding

"As per the Affidavit, the Resolution Applicant is not covered under Section 29A" (para 31(g)). "The Resolution Applicant Sanjay Badirlal Punglia along with PAC has submitted an affidavit pursuant to section 30(1) of the Code confirming its eligibility under section 29A of the Code to submit resolution plan. The contents of the said affidavit are in order" (para 34(b)). The Tribunal notes that "the Resolution Professional has certified the eligibility of the Successful Resolution Applicant under Section 29A of the Code and the Due Diligence Certificate supports the said eligibility" (para 39). No finding on related-party or promoter status is printed.

Sources of funds

"Out of total plan amount of Rs. 1,35,04,300/-, the Resolution Applicant proposes to fund the Amount of INR 50,00,000/- from its own sources and Rs. 85,04,300/- by of Unsecured loans from relatives and funds." (para 25, p.9). Separately, the Resolution Plan "provides for an infusion of Rs.2,00,00,000/- towards the working capital requirements of the Corporate Debtor, as and when required" (para 21, pp.7-8).

Statutory dues

Operational Creditors - (i) Government: claimed Rs. 954,509,614/-, admitted Rs. 954,509,614/-, realisable Rs. 2000/- (0.00%), payable T+90 days (para 20). The Plan seeks extinguishment of all GST dues, interest and penalties pertaining to the period prior to the Effective Date with consequential updating of the GST portal (para 29), and proposes payment of Rs.1,000/- towards full and final settlement of the income-tax demands reflected on the Income-tax portal for the period prior to the Effective Date (para 30). The bench directed at para 42(h) that no orders levying any tax, demand or penalty for the period up to approval shall be passed and that any such demand shall not be enforceable as having been extinguished.

Operational creditors

Other Operational creditors: Posco International India Private Limited claimed Rs. 76,039,195/-, admitted Rs,34,171,039/-, realisable Rs. 2,249/- (0.00%); Arya Ship Industries Company Private Limited claimed and admitted Rs. 1,724,940/-, realisable Rs. 51/- (0.00%). All payable T+90 days as Upfront Payment. The Regulation 38 recital records that "The amount due to the Operational Creditors under Resolution Plan shall be given priority in payment over Financial Creditors" (para 32(a)). The Goods and Services Tax Department, an operational creditor with an admitted claim exceeding 10% of total debt, was noticed for and permitted to participate in CoC meetings (para 4).

Workmen employees

The stakeholder table prints rows for "(ii) Workmen - PF dues - Other dues" and "(iii) Employees - PF dues - Other dues" with no claimed, admitted or realisable amounts entered against them (para 20, pp.6-7).

Guarantors

No treatment of guarantors is printed beyond the binding clause at para 45(i) ("binding on ... guarantors and other stakeholders involved in the Resolution Plan"). The summary table at para 19 prints "Percentage (%) of realisable amount to Other than admitted Corporate Guarantee claims - 0.51%", implying corporate guarantee claims exist, but no figure for them is printed.

Litigation carveout

"The Resolution Applicant, under the section pertaining to concessions and reliefs, has incorporated a provision to the effect that all assets, claims and rights appearing in the balance sheet of the Corporate Debtor as on the Effective Date shall continue to vest in the Corporate Debtor and may be dealt with by the Resolution Applicant at its sole discretion. Clause 11.27 of the Resolution Plan further provides that the Resolution Applicant shall be entitled to pursue and recover such assets, claims and rights in accordance with law." (para 28, p.9). PUFE recoveries under Sections 43, 45, 47, 49 and 50 are to be shared 50:50 between the SRA and the CoC (para 27).

Assets description

Registered valuers were appointed for the asset classes land and building, securities and financial assets, and plant and machinery (para 6). Debtors and short-term loans and advances aggregating approximately Rs.88 crore were valued at NIL by the Valuer (para 36). Of the receivables: Rs. 47.86 crores recoverable from A. S. Enterprise (site visits at 5/17, Malad Co-operative Housing Society, Malad (East), Mumbai - found residential with no business activity; and B-20, Deora Building, Malad (East), Mumbai - premises now occupied by EduConnectIn. Innovate Education Technology); approx. Rs. 13.25 crores receivable from two parties, both admitted into CIRP before the Corporate Debtor's CIRP commenced and sold as going concerns therein; Rs. 8,12,79,685/- due from one debtor, demand notice served in July, 23 with no steps taken thereafter; and Rs. 7,20,82,391/- stated to be barred by limitation (paras 36-37).

Interim resolution professional

Mr. Vivek Satyaprakash Jalan

RP replaced the IRP

No

Invitations for expressions of interest

1. Round no

   1

   Form g date

   2025-07-07

   Expressions of interest received

   5

   Final list count

   3

   Plans received

   2

   Outcome

   plan approved

Applicants considered

1. Name

   Oakridge Energy

   Stage reached

   final_list

   Outcome note

   Named in the final list of PRAs issued on 15.08.2025 (para 8). No resolution plan from this PRA is recorded as received; the plans received on 20.09.2025 were from the other two final-listed PRAs (para 11).

2. Name

   Mr. Sanjay Punglia (along with the person acting in concert, Farmswipe Private Limited)

   Stage reached

   approved

   Plan value as printed

   Rs. 11,004,300 /-

   Vote pct

   100%

   Outcome note

   Final list 15.08.2025; plan and EMD submitted by 20.09.2025; presented the plan at the 6th CoC meeting on 14.10.2025; revised plan submitted 17.10.2025/18.10.2025; updated Resolution Plan dated 02.01.2026 circulated on 03.01.2026 and placed before the 10th CoC meeting on 12.01.2026; sole plan available for consideration after the other PRA withdrew; approved by CoC with 100% voting share on e-voting 15.01.2026 to 29.01.2026. Also printed as "Sanjay Badirlal Punglia" (para 34(b)).

3. Name

   Mr. Rajendra Chaudhari

   Stage reached

   withdrawn

   Outcome note

   Also printed as "Mr. Rajendra Dallaram Choudhary"; plan submitted through his authorised representative Mr. Ashwin Akoliya (elsewhere printed as "Mr. Ashwin Choudhary"). Neither he nor his representative attended the 6th CoC meeting on 14.10.2025. At the 8th CoC meeting on 04.12.2025 the RP informed the CoC that he had not submitted an amended resolution plan and, vide email dated 19.11.2025, had sought a refund of the EMD, having expressed his intention not to submit any further revised plan or participate further in the resolution process (paras 8, 11, 12, 13, 15, 16).

Bidding mechanism

Negotiation on submitted plans - plans opened at the 5th CoC meeting, presentations at the 6th, revised plans invited on CoC feedback (submitted 17.10.2025 and 18.10.2025) and an updated plan dated 02.01.2026 obtained; a single plan remained for the vote after the other PRA withdrew.

Clock events

1. Kind

   extension

   Days

   90

   Granted date

   2025-11-13

   Reason

   The initial period of 180 days of the CIRP expired on 04.11.2025. With the approval of the CoC the Applicant filed IA (IBC) No. 5215 of 2025 seeking an extension of the CIRP period by 90 days; allowed by this Tribunal vide order dated 13.11.2025, extending the CIRP period until 03.02.2026. The present Application was filed on 03.02.2026, within the extended CIRP period (paras 14 and 23).

Advisors

1. Role

   transaction auditor

   Name

   R.N.D. & Co. LLP

   Note

   Appointed by the Applicant pursuant to the decision at the 2nd CoC meeting, to review and analyse the books of account and transactions of the Corporate Debtor (paras 6-7).

2. Role

   registered valuers

   Note

   The 2nd CoC meeting resolved to appoint registered valuers for the respective asset classes, namely land and building, securities and financial assets, and plant and machinery; valuation reports were placed before the 4th CoC meeting on 16.09.2025. The valuers are not named. The Registered Valuer later acknowledged incorrect observations in its report regarding non-availability of data and inability to perform an ageing analysis and issued an addendum to its valuation report, reportedly affirming no substantial change in the valuation of the securities and financial assets (paras 6, 9, 37).

3. Role

   legal - counsel for the Resolution Professional

   Name

   Adv. Nausher Kohli

4. Role

   legal - counsel for the Resolution Professional

   Name

   Adv. Subash Gupta

5. Role

   legal - counsel for the Resolution Professional

   Name

   Adv. Aishwarya Khare

1. Creditor

   Canara Bank

   Creditor class

   financial_creditor (principal secured financial creditor)

   Voting pct

   99.06%

   Vote

   not stated

2. Creditor

   Irabati Tie-Up Private Limited

   Creditor class

   financial_creditor (unsecured)

   Voting pct

   0.94%

   Vote

   not stated

Business & treatment of stakeholders

"All the Existing Equity Shares Held by shareholders i.e.48,50,000 shares of Rs 10 each shall stand extinguished and balance of Extinguished Share Capital amount of these shares shall be transferred to Capital reduction account as proposed in the resolution plan." (para 20 table, p.7). The Tribunal directed that the Applicant file the necessary forms and pay prescribed fees under the Companies Act, 2013 in relation to reduction in capital and issuance of fresh capital, with the Registrar of Companies waiving the additional fees; any increase in authorised capital is subject to payment of prescribed fee and filing of prescribed forms; and the Corporate Debtor is exempted from using the words "and reduced" (paras 42(b), 42(c), 42(l)).

Capital reduction

Yes

Effective date definition

No definition of "Effective Date" is printed. The order states that the Resolution Plan "shall become effective from this date and shall form part of this order" (para 45), i.e. 04.09.2026; the plan's relief clauses refer to dues and liabilities "pertaining to the period prior to the Effective Date" (paras 28-30) and para 42(h) uses "period up to approval of the Resolution Plan".

Monitoring committee

"The Applicant submits that Monitoring Committee shall be constituted consisting of; a) 1 representative of the CoC; b) 2 representatives of the Resolution Applicant" (para 24, pp.8-9). No members are named. Separately, "The Applicant shall supervise the implementation of the Resolution Plan and file status of its implementation before this Authority from time to time, preferably every quarter" (para 45(viii)).

Monitoring committee members

1. Role

   1 representative of the CoC

2. Role

   2 representatives of the Resolution Applicant

1. Seq

   1

   Relief

   Accounting treatment or adjustments contemplated in the Resolution Plan pursuant to its approval

   Category

   other

   Disposition

   conditional

   Reason

   "Accounting treatment or adjustments as contemplated in Resolution Plan pursuant to approval thereof shall be permissible in accordance and to the extent allowed under Companies Ac, 2013 and applicable accounting standards to corporate debtor or any other law applicable to such treatment or adjustment read with provisions of Companies Ac, 2013 and applicable accounting standards." (para 42(a), p.15)

2. Seq

   2

   Relief

   Waiver of additional fees payable to the Registrar of Companies on filings relating to reduction in capital and issuance of fresh capital

   Category

   licences_approvals

   Disposition

   granted

   Reason

   "The Applicant shall file necessary forms and pay prescribed fees, if any, in terms of provisions of the Companies Act, 2013 in relation to reduction in capital and issuance of fresh capital, however, the Registrar of Companies shall waive the additional fees, if any, payable on such filing." (para 42(b), pp.15-16)

3. Seq

   3

   Relief

   Waiver of fees on any increase in the authorised capital

   Category

   licences_approvals

   Disposition

   declined

   Reason

   "Any increase in the authorized capital shall be subject to payment of prescribed fee, if any applicable, and filing of prescribed forms with the Registrar of Companies." (para 42(c), p.16)

4. Seq

   4

   Relief

   Immunity from income-tax consequences of the accounting treatment proposed in the Plan (Sections 2(24), 28 and 56 read with GAAR)

   Category

   tax

   Disposition

   deferred_to_authority

   Reason

   "The Income Tax Department shall be at liberty to examine the tax implications arising from accounting treatment, if any, proposed in the Plan in terms of Section 2(24), Section 28 and Section 56 of the Income Tax Act, 1961 read with GAAR provisions thereunder or corresponding provisions under Income Tax Act, 2025." (para 42(d), p.16)

5. Seq

   5

   Relief

   Waiver/reduction in fees, charges, stamp duty and registration fees arising from actions contemplated under the Resolution Plan

   Category

   stamp_duty

   Disposition

   deferred_to_authority

   Reason

   "The SRA may approach prescribed authorities for waiver/reduction in fees, charges, stamp duty, and registration fees, if any arising from actions contemplated under the Resolution Plan and such request shall be dealt with subject to the relevant law/statute and adherence to the procedure prescribed thereunder." (para 42(e), p.16)

6. Seq

   6

   Relief

   Continuance and renewal of business permits, rights, entitlements, benefits, subsidies and privileges; no action for pre-approval non-compliances

   Category

   licences_approvals

   Disposition

   granted

   Reason

   "The SRA may file appropriate application, if required, for renewal of all Business Permits, rights, entitlements, benefits, subsidies and privileges ... It is clarified that continuance of approvals shall not be refused on account of extinguishment of any dues under IBC and extension or renewal thereof shall not be denied on account of past insolvency of the Corporate Debtor. No action shall lie against the Corporate Debtor for any non-compliances arising prior to the date of approval of Resolution Plan, however, such non-compliances shall be cured, if necessitated to keep the approval in force, after acquisition by the Corporate Debtor within period stipulated in the Resolution Plan." (para 42(f), pp.16-17). Reinforced at para 45(iii) and 45(vi): "the authorities shall not withhold the approval/consent/extension for the reason of insolvency of the Corporate Applicant or extinguishment of their dues upto approval of Resolution plan in terms of the approved plan."

7. Seq

   7

   Relief

   Continuation of contracts with third parties

   Category

   contracts

   Disposition

   conditional

   Reason

   "The contract with third parties shall be subject to consent of such parties." (para 42(g), p.17)

8. Seq

   8

   Relief

   Extinguishment of all pre-approval tax demands, penalties and interest; no fresh orders levying tax, demand or penalty for the pre-approval period (including the GST dues, interest and penalties and the income-tax demands the Plan seeks to settle for Rs.1,000/-)

   Category

   statutory_dues

   Disposition

   granted

   Reason

   "No orders levying any tax, demand or penalty from the Corporate Debtor in relation to period up to approval of the Resolution Plan shall be passed by any authority and such demand, if created, shall not enforceable as having extinguished in terms of approved Resolution Plan." (para 42(h), p.17). The reliefs sought were the extinguishment of all GST dues, interest and penalties prior to the Effective Date (para 29) and payment of Rs.1,000/- in full and final settlement of the income-tax demands reflected on the Income-tax portal prior to the Effective Date (para 30).

9. Seq

   9

   Relief

   Carry-forward and set-off of accumulated business losses and unabsorbed depreciation (Section 79(2)(c) of the Income-tax Act, 1961) and non-applicability of Section 115JB

   Category

   tax

   Disposition

   deferred_to_authority

   Reason

   "The carry forward of losses and unabsorbed depreciation shall be available in accordance with the provisions of Income Tax Act or Rules made thereunder, and the Income Tax Department shall be at liberty to examine the same. Further, applicability of Section 115 JB or other provisions of Income Tax Act, 1961 or corresponding provisions under Income Tax Act, 2025 shall be subject to and in accordance with the provisions of Income Tax Act, 1961 or Rules made thereunder or corresponding provisions under Income Tax Act, 2025." (para 42(i), p.17). Sought at para 22, which records a carried-forward business loss of Rs.68,28,789/- under Schedule CFL and unabsorbed depreciation of Rs.68,28,789/- under Schedule UD in the only ITR filed (FY 2018-19 / AY 2019-20).

10. Seq

    10

    Relief

    Carry-forward and utilisation of Input Tax Credit available on the GST portal without appropriation against pre-Effective-Date liabilities

    Category

    tax

    Disposition

    deferred_to_authority

    Reason

    "Further, the concerned tax authorities shall under GST/ VAT law be at liberty to examine the carry forward of input tax credit available under Indirect Tax for its further carry forward." (para 42(j), p.17). Sought at para 29.

11. Seq

    11

    Relief

    Permission to file/regularise statutory returns and filings not filed earlier, and immunity from fine or penalty for past non-compliances (compounding/condonation)

    Category

    litigation_immunity

    Disposition

    granted

    Reason

    "An application for compounding/condoning shall be filed in accordance with the procedure specified in respective law or concerned authority, however, no fine or penalty shall be imposed for non-compliances till the date of approval of this Plan or such further period as is permitted in terms of this Order." (para 42(k), pp.17-18). Sought at para 30; para 22 records that ITRs for FY 2019-20 and subsequent years have not been filed although statutory audits are complete.

12. Seq

    12

    Relief

    Updating of Registrar of Companies records to reflect the Corporate Debtor as 'Active', acceptance of physical filings where the portal does not permit e-filing, and exemption from using the words "and reduced"

    Category

    licences_approvals

    Disposition

    granted

    Reason

    "ROC shall update the records and reflect the Corporate Debtor as 'Active' upon filing of pending returns/forms after payment of normal fees (not additional fee). In case such filing is not permitted by the e-filing portal, the ROC shall accept such forms/returns in physical format and manage to upload the same by back-end. The Corporate Debtor shall be exempted from using the words 'and reduced'." (para 42(l), p.18)

13. Seq

    13

    Relief

    All assets, claims and rights appearing in the balance sheet of the Corporate Debtor as on the Effective Date to continue to vest in the Corporate Debtor and to be dealt with by the Resolution Applicant at its sole discretion, with the Resolution Applicant entitled to pursue and recover them (Clause 11.27 of the Resolution Plan)

    Category

    other

    Disposition

    not_adjudicated

    Reason

    Recited at para 28 (p.9) as part of the concessions and reliefs sought; not specifically dealt with in paras 42(a) to (l). Falls within the residual clause at para 42(n): "any relief, concession or waiver prayed in the Resolution Plan but not specifically dealt with in Para (a) to (l) above, save as otherwise permissible in terms of Ghanshyam Mishra and Sons Private Limited (supra) or specific provisions of the Code read with the Regulations, shall be deemed to be denied or rejected."

14. Seq

    14

    Relief

    (all reliefs, en bloc)

    Category

    other

    Disposition

    deferred_to_authority

    Reason

    "In the Resolution Plan, the SRA has sought the waivers/ reliefs/concessions stated in Chapter 11 of the Resolution Plans. The stated effect of the Resolution Plan and reliefs & concessions as prayed for shall be available in accordance with the principle laid down by Hon'ble Supreme Court in case of Ghanshyam Mishra and Sons Private Limited v/s. Edelweiss Asset Reconstruction Company Limited {(2021) 13 S.C.R 737} & Municipal Corporation of Greater Mumbai vs. Abhilash Lal and Ors. (2019) ibclaaw.in 480 NCLAT." (para 42, p.15). And: "The approval of the Resolution Plan shall not be construed as waiver of any statutory obligations/liabilities of the Corporate Applicant and shall be dealt by the appropriate Authorities in accordance with law. Any waiver sought in the Resolution Plan, shall be subject to approval by the Authorities concerned in light of the Judgment of Supreme Court in Ghanshyam Mishra and Sons Private Limited..." (para 45(ii), p.19); "Any relief or concession as sought on the plan shall be subject to the provisions of the relevant Act." (paras 45(iii) and 45(vi))

1. Objector

   The Adjudicating Authority (bench-initiated query; part of it recorded as an observation of the predecessor Bench)

   Objector class

   bench_itself

   Ground

   That "debtors and short-term loans and advances, aggregating to approximately Rs.88 crore have been valued at NIL by the Valuer and no concrete answer has been given except that he has undertaken actions in accordance with the provisions of law"; and, on the RP's responsive affidavit dated 29.04.2026, that the tabulated recovery efforts "only total to Rs. 10.11 crore" and that the Resolution Professional "ought to have examined the nature and genuineness of the underlying transactions in detail" in respect of the entities at Sr. Nos. 1 to 4 of the Table at Para 6, Sl. No. 2 of the table at Para 8 and the outstanding from A.S. Enterprises.

   Disposition

   clarification_ordered

   Effect on approval

   None. "However, the aforesaid, in our view, does not constitute an impediment to the approval of the Resolution Plan at this stage. The same, nevertheless, raises an issue concerning the conduct and discharge of duties by the Resolution Professional and no bearing on the approval of the resolution plan considering the opinion of Resolution Professional also that these balances are not recoverable despite his best efforts." (para 38, p.14)

1. Date

   2026-04-09

   What

   By order dated 09.04.2026 the Resolution Professional was directed to look into the NIL valuation by the Valuer of debtors and short-term loans and advances aggregating approximately Rs.88 crore, and to file specific clarification by way of an Additional Affidavit within 10 days (para 36, p.13).

2. Date

   2026-04-29

   What

   The Resolution Professional placed on record an affidavit dated 29.04.2026 detailing the status of recovery from the parties from whom these amounts were recoverable (para 36, p.13).

3. Date

   2026-06-15

   What

   The predecessor Bench observed that, although para 6 (page 8) of the affidavit dated 29.04.2026 tabulated efforts to recover the outstanding amount, "such tabulated figure only total to Rs. 10.11 crore" (para 36, p.13).

Transaction audit findings

"It is, however, stated that the Resolution Professional, upon examination of the transactions of the Corporate Debtor, formed an opinion that no preferential, undervalued, fraudulent or extortionate credit transaction was disclosed or identified. Accordingly, no avoidance application has been filed." (para 27, p.9). R.N.D. & Co. LLP was appointed Transaction Auditor to review and analyse the books of account and transactions of the Corporate Debtor (para 7). The Resolution Plan nonetheless provides that "all pending or future proceedings under Sections 43, 45, 47, 49 and 50 of the Code, and any recoveries, refunds or other benefits arising therefrom, shall be shared between the Successful Resolution Applicant and the Committee of Creditors in the ratio of 50:50" (para 27). Separately, the Tribunal held at para 38 that on noticing the non-recovery of the debts disclosed in the affidavit dated 29.04.2026 the Resolution Professional "ought to have examined the nature and genuineness of the underlying transactions in detail".

Conditions imposed

1. Condition

   "The Applicant shall file necessary forms and pay prescribed fees, if any, in terms of provisions of the Companies Act, 2013 in relation to reduction in capital and issuance of fresh capital" (para 42(b)).

   Addressed to

   Applicant / Resolution Professional

2. Condition

   "The Compliances under the applicable law for all the statutory appointments by the Corporate Debtor shall be completed within 12 months or such further period as is stipulated in the plan, where after, the necessary consequence under respective law shall follow." (para 42(m)).

   Addressed to

   Corporate Debtor / Successful Resolution Applicant

3. Condition

   "The Memorandum of Association ('MoA') and Articles of Association ('AoA') shall accordingly be amended and filed with the Registrar of Companies ('RoC'), Mumbai, Maharashtra for information and record." (paras 45(iii) and 45(v), printed twice).

   Addressed to

   Successful Resolution Applicant

4. Condition

   "The Applicant shall supervise the implementation of the Resolution Plan and file status of its implementation before this Authority from time to time, preferably every quarter." (para 45(viii)).

   Addressed to

   Resolution Professional / Applicant

5. Condition

   "The Applicant shall forthwith send a certified copy of this Order to the CoC and the Resolution Applicant, respectively for necessary compliance." (para 45(x)).

   Addressed to

   Resolution Professional / Applicant

Approval conditional on external order

No

Precedents cited

1. Case

   Ghanshyam Mishra and Sons Private Limited v/s. Edelweiss Asset Reconstruction Company Limited {(2021) 13 S.C.R 737}

   Proposition

   The stated effect of the Resolution Plan and the reliefs and concessions prayed for shall be available in accordance with the principle laid down therein (para 42); para 95(i)-(iii) extracted at para 45(ii) - once a plan is approved under Section 31(1) claims stand frozen and bind the corporate debtor, employees, members, creditors including the Central/State Government and local authorities, guarantors and other stakeholders; the 2019 Amendment to Section 31 is clarificatory and declaratory; all dues including statutory dues not part of the plan stand extinguished.

2. Case

   Municipal Corporation of Greater Mumbai vs. Abhilash Lal and Ors. (2019) ibclaaw.in 480 NCLAT

   Proposition

   Cited together with Ghanshyam Mishra for the availability of the stated effect of the Resolution Plan and the reliefs and concessions as prayed for (para 42).

3. Case

   K Sashidhar v. Indian Overseas Bank & Others (Civil Appeal No.10673/2018, decided on 05.02.2019)

   Proposition

   Where the CoC has approved the plan by the requisite percentage of voting share, Section 30(6) makes it imperative for the RP to submit it to the Adjudicating Authority, whose task is to satisfy itself that the plan meets the requirements of Section 30(2); the role of the NCLT is 'no more and no less', its discretion is circumscribed by Section 31, and it can reject the plan only by reference to matters specified in Section 30(2) (para 43).

Judicial observations

1. This Tribunal observed that debtors and short-term loans and advances, aggregating to approximately Rs.88 crore have been valued at NIL by the Valuer and no concrete answer has been given except that he has undertaken actions in accordance with the provisions of law, accordingly, the Resolution Professional, vide order dated 09.04.2026, was directed to look to the matter and specific clarification by way of an Additional Affidavit be filed within 10 days. (p.13)
2. We are of the considered opinion that, upon noticing the non-recovery of the debts due from the entities mentioned at Sr. Nos. 1 to 4 of Table at Para 6, Sl. No. 2 of table at Para 8 and outstanding from A.S. Enterprises, as disclosed in the affidavit dated 29.04.2026, the Resolution Professional ought to have examined the nature and genuineness of the underlying transactions in detail. (p.14)
3. The same, nevertheless, raises an issue concerning the conduct and discharge of duties by the Resolution Professional and no bearing on the approval of the resolution plan considering the opinion of Resolution Professional also that these balances are not recoverable despite his best efforts. (p.14)

Directives to third parties

Registrar of Companies: shall waive the additional fees, if any, payable on filings relating to reduction in capital and issuance of fresh capital (para 42(b)); shall update its records and reflect the Corporate Debtor as 'Active' upon filing of pending returns/forms after payment of normal fees (not additional fee), and where the e-filing portal does not permit such filing shall accept the forms/returns in physical format and upload them by back-end (para 42(l)). Tax and other authorities: no orders levying any tax, demand or penalty for the period up to approval shall be passed by any authority, and any demand so created shall not be enforceable as having been extinguished (para 42(h)); no fine or penalty shall be imposed for non-compliances till the date of approval (para 42(k)); authorities shall not withhold approval/consent/extension for the reason of insolvency of the Corporate Debtor or extinguishment of dues, and continuance/renewal of approvals shall not be refused on account of extinguishment of dues under the IBC or past insolvency (paras 42(f), 45(iii), 45(vi)). The Income Tax Department and the GST/VAT authorities are expressly left at liberty to examine tax implications, carry-forward of losses and unabsorbed depreciation, and carry-forward of input tax credit (paras 42(d), 42(i), 42(j)).

Companies named in the order

1. ARK Industries Private Limited

Order date

2026-09-04