Case Details

Case Name: IA(IBC)(Plan)/08/KOB/2025 in CP(IBC)/45/KOB/2024 - In the matter of M/s. Greenseed Agro Bio Labs Pvt Ltd

Adjudicating Authority: National Company Law Tribunal (NCLT), Kochi Bench

Presiding Member: Hon'ble Member (Judicial) Shri. Vinay Goel

Order Date: 25 May 2026

Date of Institution: 12 December 2025

CIRP Commencement Date: 04 April 2025

Parties Involved

Petitioner/Applicant: Mr. George Varkey, Resolution Professional of Greenseed Agro Bio Labs Pvt. Ltd. (IBBI Regn. No. IBBI/IPA-01/IP-P00433/2017-18/10756)

Successful Resolution Applicant (SRA): Mr. Darvin P. Mathew (Promoter/Managing Director of Corporate Debtor)

Financial Creditor: Federal Bank Ltd. (Sole member of Committee of Creditors with 100% voting share)

Corporate Debtor: M/s. Greenseed Agro Bio Labs Pvt Ltd (CIN: U01100KL2020PTC066036)

Issues / Allegations / Violations

The Corporate Insolvency Resolution Process (CIRP) was initiated against Greenseed Agro Bio Labs Pvt Ltd under Section 7 of the Insolvency and Bankruptcy Code, 2016, based on a petition filed by Federal Bank Ltd. The admitted financial claim was ₹1,57,41,578. The corporate debtor, incorporated on 01.12.2020, is engaged in tissue culture, horticulture, and agricultural biotechnology operations with its principal place of business at Idukki, Kerala.

Findings & Observations

The Tribunal found that:

  • The corporate debtor qualified as an MSME (UDYAM Registration No. UDYAM-KL-11-0002046)
  • The average fair value was determined at ₹2,41,42,931 and liquidation value at ₹2,11,57,675 by registered valuers
  • Only one resolution plan was received from the promoter, Mr. Darvin P. Mathew, despite multiple Expressions of Interest
  • The Committee of Creditors (CoC) unanimously approved the plan with 100% voting share
  • The resolution plan complied with Section 30(2) requirements of the IBC
  • The Resolution Professional initially lacked diligence in submitting a complete plan, necessitating an addendum

Penalties / Settlements / Directions

Resolution Plan Value: ₹2,58,82,010

Payment Structure:

  • CIRP Costs: ₹11,00,000 (paid in priority - ₹5,00,000 from EMD, ₹6,00,000 upfront upon approval)
  • Secured Financial Creditor (Federal Bank): ₹1,57,41,578 (₹9,00,000 upfront, balance within 3 years)
  • Related-party liabilities (Director/Shareholder loans): ₹90,40,432 (payable in the sixth year from Effective Date)

Key Conditions:

  • SRA to retain at least 75% shareholding during implementation period
  • Performance Bank Guarantee of ₹1,00,000 to be furnished
  • Monitoring Committee comprising Resolution Professional and Financial Creditor representative
  • Personal guarantees and security interests continue in full force

Corrective Actions & Future Obligations

  • Implementation period of six years from NCLT approval
  • Opening of ring-fenced Plan Implementation Account
  • Monthly monitoring fee of ₹5,000 plus taxes to Resolution Professional
  • Regular financial reporting to Monitoring Committee
  • Restrictions on asset disposal without Financial Creditor consent
  • Business revival focused on tissue culture, mushroom cultivation, and agricultural activities

Final Ruling & Enforcement

The NCLT approved the resolution plan under Section 31 of the IBC, 2016, noting that:

  • The plan is compliant with Sections 30 and 31 of the Code and Regulations 38 and 39 of CIRP Regulations
  • All claims not part of the resolution plan stand extinguished per Supreme Court precedent
  • The moratorium under Section 14 ceases from the date of the order
  • The Resolution Professional is discharged but must hand over all records to the SRA
  • The Monitoring Committee must file progress reports on implementation
  • The commercial wisdom of the CoC is paramount and not subject to judicial interference except on limited grounds of statutory compliance