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NCLT Approves ₹7.42 Crore Plan Despite ₹560 Crore Claims
A tribunal approved a plan to settle the debts of Central Departmental Stores.
Fincare Enterprises offered to pay about ₹7.42 crore.
Central Bank of India had claimed about ₹560.57 crore.
The bank’s claims were rejected during the resolution process, according to the article.
The approved plan includes about ₹1.24 crore in immediate cash.
It also includes money that may be recovered later from shares and certain transactions.
The bank will receive ₹1.2375 crore upfront after insolvency costs are adjusted.
A monitoring committee will oversee the plan’s implementation.
After that, control of the company will move to Fincare Enterprises.
Mumbai’s NCLT approved Fincare Enterprises’ ₹7.42 crore resolution plan for Central Departmental Stores.
Central Bank of India’s claims totaling about ₹560.57 crore were rejected during the resolution process.
The plan includes ₹1.24 crore in upfront cash and recoveries from specified assets and transactions.
Central Bank of India is to receive ₹1.2375 crore upfront after adjustment of insolvency-process costs.
The insolvency process began on September 24, 2024, and the plan was approved on July 2, 2026.
- Who
- Fincare Enterprises, Central Departmental Stores Private Limited, Central Bank of India, and the Mumbai bench of the National Company Law Tribunal.
- What
- The tribunal approved a ₹7,42,77,830 resolution plan for Central Departmental Stores.
- Where
- The Mumbai bench of the National Company Law Tribunal.
- When
- The plan was approved on July 2, 2026; the insolvency process began on September 24, 2024.
- Why
- The plan was approved after the tribunal found it compliant with the Insolvency and Bankruptcy Code and related regulations.
Key facts
- Approved plan value
- ₹7,42,77,830, or about ₹7.42 crore
- Resolution applicant
- Fincare Enterprises
- Financial creditor
- Central Bank of India
- Admitted claims
- About ₹560.57 crore, including ₹381.62 crore in corporate guarantee claims and ₹178.94 crore in interest and penalties
- Upfront payment
- ₹1.24 crore; Central Bank of India is to receive ₹1.2375 crore after adjustment of CIRP costs
- Fair value
- ₹20.80 crore
- Liquidation value
- ₹16.37 crore
- Monitoring period
- Recoveries from shares in Niyman Mall Management and avoidance transactions will be monitored under the plan
Quotes
National Company Law Tribunal order
The Mumbai bench’s written order approving Fincare Enterprises’ resolution plan.
“Normally, if the valuation amount of the company is lesser than the actual claim amount, in that case, the tribunal initially proceeds with the initial amount as approved by the resolution professional.”
freepressjournal.in
“As per the approved resolution plan, the total Resolution Plan Value is Rs 7,42,77,830, which is bifurcated into upfront cash consideration and deferred consideration on recovery basis, at actuals.”
freepressjournal.in
Sources
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