Authority: National Company Law Tribunal (NCLT), Indore Bench, Court No. 1

Order Date: 06 July 2026

Case Overview

The application was filed by Mr. Jagdish Kumar Parulkar, the Resolution Professional (RP) of GEI Power Limited (Corporate Debtor), under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking approval of the resolution plan submitted by M/s Naveen Infraspace Private Limited in Consortium with M/s Guru Trade Advisory Private Limited (Successful Resolution Applicant or SRA).

GEI Power Limited, incorporated on 07 February 1991 (CIN: U02899MP1991PLC006262), was engaged in manufacturing Air Cooled Heat Exchangers (ACHE) and Air Cooled Steam Condensers (ACSC). Its corporate insolvency resolution process (CIRP) was initiated on 22 January 2025, based on a petition filed by Union Bank of India under Section 7 of the IBC due to a default in repayment. The company was classified as an NPA on 30 June 2013.

During the CIRP, the RP received claims from financial and operational creditors. The Committee of Creditors (CoC) was constituted with six secured financial creditors: Union Bank of India (14.1478%, ₹58.28 crore), IDBI Bank (31.6255%, ₹130.27 crore), ARCIL (14.3981%, ₹59.31 crore), Citibank (24.7093%, ₹101.78 crore), MPFC (15.1183%, ₹62.28 crore), and HDFC Bank Ltd. (0.0011%, ₹43,855). The total admitted claim of secured financial creditors was ₹411.92 crore. Operational creditors' admitted claims were: EPFO (₹32.05 lakh), MPMKVVCL (₹19.12 lakh), Income Tax Department (₹77.39 lakh), and trade operational creditors (₹8.15 lakh). Related party claims of ₹25.75 crore were filed, of which ₹3.39 crore was admitted, but the plan proposed nil payment to them.

Three registered valuers were appointed. The average fair value of the corporate debtor was determined as ₹22.60 crore, and the average liquidation value was ₹4.24 crore, based on the two closest valuations, as the third valuer's report was an outlier for not considering a lease clause that rendered the land value nil.

The CoC held 12 meetings between 24 February 2025 and 17 November 2025. Three resolution plans were received, but one from the suspended management (Mr. C.E. Fernandes) was deemed ineligible under Section 29A. The plan by Naveen Infraspace Consortium was approved by the CoC with 99.98% voting share (71.45% via direct e-voting and assents via email from Union Bank and ARCIL).

The resolution plan dated 16 September 2025 proposed a total resolution amount of ₹24,14,03,313 (₹24.14 crore), payable upfront within 3 months from the record date. The financial proposal included:

  • ₹25 lakh for unpaid CIRP costs
  • ₹23.51 crore for secured financial creditors (5.70% recovery on admitted claims)
  • 100% payment to EPFO (₹32.05 lakh)
  • 5.71% payment to MPMKVVCL (₹1.09 lakh)
  • 5.71% payment to trade operational creditors (₹46,544)
  • 5.31% payment to Income Tax Department (₹4.42 lakh)
  • Nil payment to related parties and workmen/employees

The plan also involves capital restructuring: extinguishment of the existing paid-up equity share capital of ₹28.66 crore (held by GEI Industrial Systems Ltd) for nil consideration and infusion of ₹7 crore for capital expenditure and ₹15 crore for working capital by the SRA, who will hold 100% equity post-implementation.

The SRA, a consortium, comprises Naveen Infraspace Private Limited (a construction company) and Guru Trade Advisory Private Limited (an advisory firm). The RP certified their eligibility under Section 29A. The plan includes a performance security of ₹2 crore and provides for a monitoring committee to supervise implementation.

Final Outcome

The NCLT approved the resolution plan. The moratorium under Section 14 ceased. All claims and liabilities not dealt with in the plan stand extinguished. The existing board stands dissolved, and a new board nominated by the SRA will take charge. The corporate debtor and SRA get immunity under Section 32A for pre-CIRP offenses. The reliefs and concessions sought were granted to the extent specified in the order, following the principles in the Ghanshyam Mishra case.

Topics: Corporate Insolvency, Resolution Plan, Creditor Settlement