Authority: National Company Law Tribunal (NCLT), Kolkata Bench (Court-II)

Order Date: 22 June 2026

Case Overview

This application was filed by Mr. Ajay Kumar Agarwal, the Resolution Professional (RP) of M/s. Avani Projects and Infrastructure Limited (Corporate Debtor), under section 30(6) and 31 of the Insolvency & Bankruptcy Code (IBC), 2016, read with Regulation 39(4) of the CIRP Regulations. It sought approval of a Resolution Plan submitted by Prominent Suppliers Private Limited (the Successful Resolution Applicant or SRA) for the corporate debtor's 'Avani Grand' real estate project.

The Corporate Insolvency Resolution Process (CIRP) was initiated against the corporate debtor on 13 March 2019, based on a petition filed by Devi Trading & Holding Pvt. Ltd. The corporate debtor is a real estate developer incorporated on 11 April 2005.

The Committee of Creditors (CoC), in its 21st meeting convened on 26 June 2025, approved the Resolution Plan dated 18 April 2025 with a 71.94% majority vote. The SRA, itself a homebuyer in the project, submitted the plan pursuant to an NCLT order dated 9 December 2024, which allowed it to do so. The plan is project-specific, concerning only the 'Avani Grand' project.

The total admitted claims against the corporate debtor stand at ₹477.64 Crores, from 198 creditors. The CoC for the project is uniquely constituted, with homebuyers (a class of creditors) holding 68.65% of the voting share. The Resolution Plan provides a total resolution value of ₹330.71 Crores.

A significant challenge noted was the inability of appointed registered valuers (Ms. Aparna Das and M/s Valsight Advisors Pvt. Ltd.) to determine a definitive Fair Value or Liquidation Value for the project. They cited ongoing litigation concerning the termination of the underlying lease from the Kolkata Municipal Corporation (KMC) and a Joint Development Agreement (JDA) with Adone Hotels and Hospitality Limited, which rendered the corporate debtor's rights 'uncertain and sub judice'.

The plan's financial proposal involves completing construction and delivering apartments to homebuyers. A projected surplus of ₹92.79 Crores (from total collections of ₹330.71 Cr against costs of ₹237.92 Cr) is to be distributed as per the JDA: 40% (₹37.12 Cr) to Adone and 60% (₹55.67 Cr) to the corporate debtor. The corporate debtor's share is to be used to pay certain financial and operational creditors. Secured Financial Creditors (e.g., State Bank of India with an admitted claim of ₹70.26 Cr) are offered 47.54% of their claim (₹33.40 Cr) from this surplus. Unsecured Financial Creditors are offered 39.44%, and Other Operational Creditors (admitted claim ₹11.47 Cr) are offered just 4.86% (₹0.56 Cr). Homebuyers will receive their apartments, constituting 100% settlement of their principal claims.

The implementation will be overseen by an Oversight Committee comprising the SRA, a homebuyer representative, a CoC nominee, and the RP. The SRA sought extensive reliefs, waivers, and concessions for the plan's implementation.

Final Outcome

The NCLT approved the Resolution Plan subject to specific observations and directions:

1. The plan is binding on the corporate debtor, its employees, members, creditors, guarantors, and the Central/State Governments.

2. All liabilities of the corporate debtor relating to the 'Avani Grand' project, as of the approval date, stand extinguished.

3. The moratorium under Section 14 of the IBC ceases for the 'Avani Grand' project.

4. The SRA must pay the regulatory fee stipulated under Regulation 31A of the CIRP Regulations, calculated at 0.25% of the realisable value (₹330.71 Cr). The exemption under the explanation to Regulation 31A was deemed inapplicable as the SRA is not an 'association or group of allottees'.

5. The reliefs and waivers sought are only granted to the extent permissible under the IBC and the Companies Act, 2013. For reliefs concerning other statutes and government authorities (taxation, stamp duty, municipal approvals, etc.), the SRA must apply to the respective competent authorities.

6. The approval operates as a clean slate for the project under Section 31 of the IBC, extinguishing claims not part of the plan, in line with the Supreme Court's judgment in Ghanshyam Mishra.

7. The order clarifies that the resolution is project-wise, and all benefits are confined solely to the 'Avani Grand' project.

8. The RP is directed to hand over all project-related records and assets to the SRA.

Topics: Insolvency Resolution, Real Estate, Homebuyers