Case Details
Case Name: IA.No.851/2025 in CP (IB) No. 166/BB/2019
Parties: Mr. Konduru Prasanth Raju (Monitoring Professional) vs. Mr. Ashish Krishnaswamy & Mr. Darshan Pushparaj (Successful Resolution Applicants)
Court/Authority: National Company Law Tribunal, Bengaluru Bench
Order Date: 19.05.2026
Admission Date: 11.12.2019 (Original CIRP commencement)
Resolution Plan Approval Date: 05.04.2022
Parties Involved
Petitioner/Applicant: Mr. Konduru Prasanth Raju, Monitoring Professional for KNK Construction Private Limited
Respondents:
- Mr. Ashish Krishnaswamy (Successful Resolution Applicant)
- Mr. Darshan Pushparaj (Successful Resolution Applicant)
Corporate Debtor: KNK Construction Private Limited
Financial Creditors: Union Bank of India, Tata Capital Financial Services Limited, HDFC Bank
Legal Representatives: For Monitoring RP: Ms. Lakshmi Menon and Ms. Tania Das K; For SRA: Shri Dr. P.S.N Prasad with Shri Abhirup P B
Issues / Allegations / Violations
The application was filed by the Monitoring Professional seeking closure of the monitoring process under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of the National Company Law Tribunal Rules, 2016. The primary issue was determining whether the Successful Resolution Applicants had fully complied with all obligations under the Resolution Plan approved by the Tribunal on 05.04.2022.
Findings & Observations
The Tribunal observed that:
- The Resolution Plan dated 16.10.2020 was approved unanimously by the Committee of Creditors
- The Monitoring Professional was appointed to supervise implementation of the approved Resolution Plan
- A Monitoring Committee was constituted and held periodic meetings from 2022 to 2025
- The SRA made payments aggregating to ₹56.21 Crores to Financial Creditors, ₹1.01 Crores to Operational Creditors, and ₹0.75 Crores towards statutory dues
- The SRA completed several ongoing projects of the Corporate Debtor and undertook new projects
- Substantial capital was infused into the Corporate Debtor and employee strength increased significantly
- Only ₹4.94 lakhs remained unpaid due to non-availability of correct bank account details of certain Operational Creditors despite public notices
- The objective of the Code is resolution of the Corporate Debtor as a going concern
Penalties / Settlements / Directions
The Tribunal allowed the application with the following directions:
- The implementation of the approved Resolution Plan is taken on record
- The SRA are held to have substantially complied with the obligations under the approved Resolution Plan
- The Registrar of Companies is directed to change the status of the Corporate Debtor from "under CIRP" to "ACTIVE"
- The Monitoring Committee and the role of the Monitoring Professional stand concluded
- The amount of ₹4,94,233.22 remaining in the Resolution Plan account shall be deposited before the Adjudicating Authority by way of Fixed Deposit Receipt (FDR) drawn in a nationalized bank for three years
- Concerned Operational Creditors may seek release of their proportionate share by filing appropriate application with supporting credentials
- The original FDR must be submitted before the Registry of the Tribunal within one week
Corrective Actions & Future Obligations
The Tribunal directed that the undisbursed amount of ₹4,94,233.22 be preserved in an FDR for three years to protect the rights of operational creditors who could not be paid due to missing bank details. The Corporate Debtor is now restored to normal functioning status with the Registrar of Companies.
Final Ruling & Enforcement
The Interlocutory Application (IA.No.851/2025) was allowed, concluding the corporate insolvency resolution process for KNK Construction Private Limited. The Corporate Debtor is now free from the clutches of Corporate Insolvency Proceedings and the Monitoring Committee stands dissolved. The Successful Resolution Applicants have successfully implemented the Resolution Plan and revived the company as a going concern.