Authority: National Company Law Tribunal (NCLT), Division Bench, Court-I, Ahmedabad

Order Date: 18 June 2026

Case Overview

The application was filed by CA Vineeta Maheshwari, the Resolution Professional (RP) of M/s Bloom Dekor Limited, under Sections 30(6) read with Section 31(1) of the Insolvency and Bankruptcy Code, 2016 (IBC). It sought approval of a resolution plan submitted by Dr. Sunil Gupta and Mr. Karan Singh Wilkhoo (Respondent Nos. 2 & 3), which was approved by the Committee of Creditors (CoC) with a 100% voting share via a postal ballot concluded on 25 April 2026.

The Corporate Insolvency Resolution Process (CIRP) against Bloom Dekor Ltd was initiated on 11 October 2023 following a petition by Karan Monomers Private Limited. The company is a listed public entity engaged in manufacturing and marketing decorative laminates, doors, plywood, and allied products.

The resolution process saw plans from three prospective applicants. An earlier plan from Dr. Sunil Gupta was approved by the CoC in May 2024 but was remanded back for reconsideration by the NCLT on 16 July 2024 due to objections from an unsuccessful applicant, Mishtann Foods Ltd. Appeals to the NCLAT were later withdrawn, reviving the remand order. The RP subsequently invited revised plans.

A significant development during the CIRP was the assignment of the sole financial debt from Sampati Securities Limited to Goenka Business and Finance Limited on 23 January 2026, which was approved by the NCLT on 3 February 2026. The CIRP timeline was extended multiple times, with a final 60-day extension granted on 2 April 2026, excluding the period from 25 May 2024 to 13 January 2026 due to appellate proceedings.

The revised plan from Dr. Gupta and Mr. Wilkhoo was submitted on 14 April 2026. The CoC, in its 23rd meeting, resolved to have it legally vetted by Advocate Darshan Solanki before putting it to a vote.

Key Financials of the Approved Plan:

  • Total Admitted Claims: Rs. 20,85,47,726
  • Resolution Plan Value: Rs. 4,33,00,810 + unpaid CIRP costs.
  • Fair Value of Assets: Rs. 7,72,89,197
  • Liquidation Value of Assets: Rs. 3,78,36,327
  • The plan's payout represents 56.04% of the fair value and 114.45% of the liquidation value.
  • CIRP Costs: To be paid in full and in priority.
  • Financial Creditors (Unsecured Unrelated): Admitted claim of Rs. 26,68,750 to be paid in full upfront.
  • Financial Creditors (Related Party): Admitted claim of Rs. 12,13,77,735; Rs. 2,00,00,000 to be paid via restructuring, and Rs. 8,13,77,735 to be converted into equity.
  • Operational Creditors (Workmen/Employees): Admitted claim of Rs. 21,18,060 to be paid in full upfront.
  • Operational Creditors (Others/Govt Dues): Admitted claim of Rs. 8,23,83,181; Rs. 1,85,14,000 proposed to be paid.
  • Working Capital/Capex: Infusion of up to Rs. 4,00,00,000 within 90 days of the effective date.

Corporate Restructuring:

The plan involves a substantial restructuring of the corporate debtor's share capital. The authorised capital will be increased from Rs. 10 Crores to Rs. 15.20 Crores. Existing share capital will be reorganized and reduced, where 250 existing equity shares will be consolidated into one new share. The assigned debt of Rs. 8.13 Crores will be converted into equity shares at face value (Rs. 10 per share). The new promoters will subscribe to 30,00,000 new equity shares. The company will remain listed on the BSE, and SEBI regulations will apply.

Management Change:

Upon implementation, the existing board will be replaced by a new board comprising nominees of the resolution applicant and independent directors. Control and management will transfer to the new promoter group. A Monitoring Committee will be constituted to oversee the implementation process, which is scheduled to be completed within approximately 90 days from the effective date.

The Tribunal noted that the RP had examined the plan and certified its compliance with Sections 30(2) and 31 of the IBC and Regulation 38 of the CIRP Regulations. The resolution applicants were found eligible under Section 29A of the Code, with the provisions of clauses (c) and (h) not applying as the corporate debtor is an MSME and one applicant is its promoter.

Final Outcome

The NCLT approved the resolution plan. The moratorium under Section 14 of the IBC ceases to have effect. All claims not provided for in the plan stand extinguished. The resolution applicant is directed to make payments as per the stipulated timelines; failure may result in forfeiture of amounts paid and could attract consequences under Section 33 of the Code.

The Tribunal clarified that it does not grant blanket waivers for statutory liabilities under other laws (e.g., Income Tax, GST). The resolution applicant must approach the concerned statutory authorities for any specific reliefs or concessions, which those authorities must consider in light of the 'clean slate' principle established by the IBC and Supreme Court precedents.

The Corporate Debtor is entitled to protection under Section 32A of the IBC, subject to fulfilling its conditions. The Monitoring Committee is directed to file monthly progress reports with the NCLT until full implementation. A copy of the order has been sent to the Registrar of Companies and the Principal Chief Commissioner of Income Tax, Ahmedabad, for necessary action.

Topics: Corporate Insolvency, Debt Resolution, Capital Restructuring