Authority: National Company Law Tribunal (NCLT), Principal Bench, New Delhi
Order Date: 11 June 2026
Case Overview
The National Company Law Tribunal (NCLT) heard an interlocutory application (IA(IBC)(PLAN)/3/(PB)/2026) filed by Mr. Manish Agrawal, the Resolution Professional (RP) of Magnifico Minerals Private Limited (Corporate Debtor), seeking approval of a resolution plan under Section 30(6) read with Section 31 of the Insolvency and Bankruptcy Code, 2016 (IBC). The corporate insolvency resolution process (CIRP) against Magnifico Minerals was initiated on 7 August 2024, based on a petition filed by Central Bank of India (Financial Creditor) under Section 7 of the IBC. The company, incorporated in 2011 and engaged in minerals and metals trading, had undergone a CIRP period extended multiple times, concluding with this approval.
The resolution plan was submitted by Dickey Asset Management Private Limited (DAMPL) on behalf of Dickey Alternative Investment Trust (DAIT), a SEBI-registered Category II Alternative Investment Fund (Registration IN/AIF2/20-21/0813). The plan was approved by the Committee of Creditors (CoC) with 100% voting share in its 18th meeting held on 18 October 2025 (adjourned and concluded on 27 October 2025). The CoC comprised Prudent ARC (70.81% voting share) and Central Bank of India (29.19% voting share).
The admitted claims totaled ₹60.45 crore, with financial creditors' claims admitted at ₹57.03 crore (Prudent ARC: ₹403.80 crore; Central Bank: ₹166.50 crore) and operational creditors' claims at ₹3.42 crore. The fair value of the corporate debtor was assessed at ₹15.53 crore, and the liquidation value at ₹12.42 crore.
The resolution plan valued at ₹55 crore includes an upfront infusion of ₹3 crore by the SRA and an assignment consideration of ₹52 crore to be paid by an identified Asset Reconstruction Company (ARC) to the financial creditors. The plan provides for payment of unpaid CIRP costs (₹53.76 lakh), workmen and employee dues (₹2.60 lakh), and a token amount of ₹1 lakh to operational creditors (government dues). The remaining amount from the upfront infusion, along with the ₹52 crore from the ARC, will be paid to the assenting financial creditor (Prudent ARC).
The SRA identified the cause of default as cash flow shortfalls due to reduced margins, COVID-19 impact, commodity price fluctuations, supply chain disruptions, and poor cost management. The plan proposes to address these through business restructuring, potential asset sales, and operational improvements.
Final Outcome
The NCLT approved the resolution plan submitted by Dickey Asset Management Private Limited. The plan is binding on the corporate debtor, its creditors, employees, and other stakeholders. The moratorium under Section 14 of the IBC ceases immediately. The SRA must implement the plan within 90 days from the date of the order, including the infusion of funds, payment to creditors, and reconstitution of the board of directors. A monitoring agency will oversee implementation, and the resolution professional stands discharged upon implementation, save for duties related to the plan. The SRA must obtain all necessary regulatory approvals within one year.
Topics: Insolvency Resolution, Debt Assignment, Corporate Restructuring