NCLT Allahabad Bench Approves Hind Agro Resolution Plan

Authority: National Company Law Tribunal (NCLT), Allahabad Bench, Prayagraj

Order Date: 11 June 2026

Case Overview

This order pertains to IA (Plan) No. 8/2025 in CP (IB) No. 04/ALD/2019, an application filed by Mr. Paramjeet Singh Bhatia, the Resolution Professional (RP) of Hind Agro Industries Limited (Corporate Debtor), under Section 30(6) of the Insolvency and Bankruptcy Code (IBC), 2016. The application sought approval of a resolution plan submitted by GSW Enterprises Private Limited (Successful Resolution Applicant or SRA) for the corporate insolvency resolution of Hind Agro Industries Ltd.

The Corporate Insolvency Resolution Process (CIRP) against Hind Agro was initiated on 03 March 2023, following an order by the NCLT on a petition filed by Dena Bank (now Bank of Baroda) under Section 7 of the IBC. Mr. Paramjeet Singh Bhatia was appointed as the Interim Resolution Professional and later confirmed as the RP by the Committee of Creditors (CoC).

The RP made a public announcement on 11 March 2023, inviting claims from creditors. The verified claims led to the constitution of a CoC comprising five financial creditors: Punjab National Bank (37.65% voting share), Bank of Baroda (28.29%), IFCI Limited (12.46%), Indian Bank (14.94%), and Central Bank of India (6.66%), with a total admitted claim of ₹944.94 crores.

The CIRP faced significant challenges, including difficulties in taking possession of the corporate debtor's factory premises and assets in Aligarh, Uttar Pradesh. The RP required assistance from local authorities and orders from the NCLT (IA No. 346/ALD/2023) to finally gain custody on 12 August 2024.

The process for inviting Expressions of Interest (EOI) had to be conducted twice. The first invitation in May 2023 yielded no plans. A second invitation in August 2024 after possession was gained resulted in eleven EOIs. After evaluations and extensions, two resolution plans were ultimately received from M/s Chemester Food Industry Private Limited and M/s G.S.W. Enterprises Private Limited by the final deadline of 15 March 2025.

The CoC, after detailed deliberations in its 27th meeting on 08 April 2025 and subsequent negotiations, decided to put both plans to a vote using a Swiss Challenge mechanism. In the 31st CoC meeting held on 28-29 May 2025, the resolution plan submitted by GSW Enterprises was approved with 87.54% of the voting share. The plan submitted by Chemester was not approved.

The approved resolution plan has a total value of ₹295 crores, comprising:

  • ₹95 crores to be distributed to creditors as a full and final settlement of their claims.
  • ₹200 crores proposed to be infused over 5 years for working capital and capital expenditure (revised to ₹30 crores from SRA/bank sources and ₹170 crores from future profits).

The distribution pattern approved by the CoC for the ₹95 crores settlement amount (after adjusting for liquidation value of uncharged land) was as follows:

| Bank | Admitted Claim (₹ Cr) | Distribution (₹ Cr) |

| PNB | 355.79 | 55.79 |

| BoB | 267.29 | 41.91 |

| IB | 141.20 | 22.14 |

| CBI | 62.97 | 9.87 |

| IFCI | 117.69 | 0.83 |

| Total | 944.94 | 130.53 |

Note: The order directs that the distribution must be reconsidered and adjusted in compliance with a separate order in IA No. 588/2025 to align with the waterfall mechanism under Section 53 of the IBC, without altering the total resolution amount.

The SRA provided a performance bank guarantee of ₹7.5 crores (after adjusting an EMD of ₹2 crores), totalling ₹9.5 crores. A comfort letter from Bank of India was submitted, indicating the processing of a term loan of up to ₹71.25 crores and a cash credit facility of up to ₹25 crores to fund part of the settlement amount and working capital.

The CIRP timeline involved several extensions and exclusions granted by the NCLT. The initial 180-day period ended on 30 August 2023. Subsequent orders extended and excluded time, ultimately extending the CIRP up to 16 August 2025. The NCLT suo-motu excluded the period from the filing of this application (10 August 2025) until the approval date.

Final Outcome

The NCLT approved the resolution plan submitted by GSW Enterprises Private Limited along with its addendum dated 01 May 2025. The plan is binding on the corporate debtor, its employees, members, creditors, the Central Government, State Government, and local authorities under Section 31(1) of the IBC.

A monitoring committee was constituted comprising one representative from Punjab National Bank (or CoC nominee), the Resolution Professional, and one nominee of the Resolution Applicant. This committee will supervise the implementation of the plan and file monthly progress reports.

The moratorium under Section 14 of the IBC ceased to have effect from the date of this order.

The responsibility for pursuing an existing application under Section 66 of the IBC (IA No. 431/ALD/2023) for fraudulent trading rests with the financial creditors. Any recoveries from such proceedings will solely benefit the financial creditors.

The order grants extensive reliefs and concessions to the SRA, largely upholding the clean slate principle under Section 32A of the IBC. This includes immunity from past liabilities and proceedings for the corporate debtor and its new management, deemed waiver of past statutory non-compliances and dues (subject to future compliance), and directions for authorities to provide necessary cooperation for revival, including restoration of electricity connections without payment of past dues.

The RP is discharged from his duties and is directed to hand over all records and assets to the SRA. The SRA is directed to comply with all statutory obligations and seek necessary approvals within one year as per Section 31(4) of the IBC.

Topics: Corporate Insolvency, Resolution Plan, Creditor Settlement