Case Overview

This order pertains to an application (IA (IBC) (PLAN) No. 95 of 2024) filed by Resolution Professional Shri Charudutt Marathe under Section 30(6) of the Insolvency and Bankruptcy Code, 2016, seeking approval of the resolution plan for Creatoz Builders Private Limited. The Corporate Insolvency Resolution Process (CIRP) was initiated against Creatoz Builders on 21 November 2023 based on a petition filed by operational creditor Virendra K Pawar (Proprietor of Shree Electricals Enterprises).

The resolution plan was submitted by Authum Investment & Infrastructure Limited (Successful Resolution Applicant) and approved by the Committee of Creditors (CoC) in its 9th meeting held on 5 October 2024 with 99.31% voting share through e-voting concluded on 8 October 2024. The CoC comprised one secured financial creditor (Authum Investment & Infrastructure Limited, holding 98.33% voting share) and 27 home buyers represented through Authorised Representative Shri Vivek Dabhade (holding 1.67% voting share).

The CIRP process involved multiple CoC meetings starting from 27 December 2023, publication of Expression of Interest on 16 February 2024, and submission of resolution plans by 29 April 2024. The CIRP period was extended several times by the NCLT, including a 90-day extension on 14 August 2024, and exclusions of 60 days and 45 days on 10 December 2024 and 4 February 2025 respectively.

Key Features of the Resolution Plan

The approved resolution plan provides for:

  • Total resolution value of ₹8.00 crore plus monetary value of flats to be provided to allottees (home buyers) amounting to ₹8.67 crore
  • Payment of ₹5.80 crore to assenting financial creditors (2.46% of admitted claims of ₹235.54 crore)
  • Zero payment to dissenting financial creditors and operational creditors
  • Provision of flats to home buyers in lieu of their admitted claims of ₹401.92 lakh
  • Infusion of additional funds: up to ₹1 crore for capital expenditure and ₹1.01 crore for working capital
  • Issuance of equity shares to the resolution applicant within 90 days from NCLT approval date
  • Constitution of a Monitoring Committee comprising one representative each from the secured financial creditor, resolution applicant, and the resolution professional
  • Implementation schedule of 90 days from the NCLT approval date
  • Retention of existing employees with liberty to induct additional personnel

Statutory Compliance

The Resolution Professional certified that the plan complies with Section 30(2) of the IBC, including payment of insolvency resolution process costs in priority, treatment of operational creditors' claims, management provisions for the corporate debtor, and absence of legal contraventions. The fair value of the corporate debtor was assessed at ₹19.47 crore and liquidation value at ₹16.20 crore.

Final Outcome

The NCLT approved the resolution plan under Section 31 of the Insolvency and Bankruptcy Code, 2016, finding it compliant with all legal requirements. The plan becomes effective immediately and is binding on the corporate debtor, its employees, members, creditors, guarantors, and other stakeholders. The moratorium under Section 14 of the Code ceases from the date of this order.

The order includes specific directions regarding tax treatment of debt assignment and extinguishment, compliance with Companies Act requirements, renewal of business permits, treatment of statutory dues, and carry forward of losses and tax credits. The resolution professional is required to supervise implementation and file quarterly status reports with the NCLT.

Topics: Corporate Insolvency, Resolution Plan, Real Estate