Authority: National Company Law Tribunal (NCLT) Principal Bench, New Delhi

Order Date: 11.06.2026

Case Overview

The proceedings originated from an application filed by IFCI Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC) against ERA Housing & Developers (India) Limited (Corporate Debtor). The Corporate Insolvency Resolution Process (CIRP) was initiated on 08.02.2018. After two failed attempts to find a resolution applicant, the Committee of Creditors (CoC) unanimously decided to liquidate the company due to the absence of a viable resolution plan. The NCLT commenced liquidation proceedings vide order dated 03.12.2019, appointing Mr. Sunil Kumar Gupta as the Liquidator.

During the liquidation process, M/s Indo Jatalia Holdings Limited (IJHL), an NBFC to which another financial creditor (SICOM Ltd.) had assigned its debt, proposed a Scheme of Compromise and Arrangement under Section 230 of the Companies Act, 2013. The total admitted claims of financial creditors amounted to ₹326,29,03,347. The Stakeholders' Consultation Committee (SCC), in its 9th meeting on 15.01.2025, approved the scheme with 78.36% votes in favor. The dissenting financial creditor was STCI Limited, holding a 21.64% vote share.

The Liquidator filed the present application (IA(I.B.C)/1392(PB)2025) on 20.03.2025 seeking the tribunal's approval for the scheme. The NCLT raised several clarifications regarding the delay in filing, the eligibility of the proposer under Section 29A of IBC, and compliance with legal provisions, which were addressed by the Liquidator via an affidavit dated 03.07.2025. The tribunal also directed the convening of a meeting of creditors where the proponent (IJHL) was not allowed to vote. The scheme was again approved in this meeting with 77.18% of the vote value (excluding IJHL's vote), surpassing the required 75% threshold under Section 230(6) of the Companies Act.

The proposed scheme involves a total consideration of ₹7,50,00,000. Its salient features include:

  • A cash infusion of ₹2,00,00,000 by IJHL, with ₹50,00,000 for acquiring 100% equity and ₹1,50,00,000 as an unsecured loan at 6% p.a.
  • ₹1,25,00,000 earmarked for CIRP and liquidation costs.
  • ₹65,00,000 earmarked for distribution to financial creditors, prioritizing payment of liquidation value to the dissenting financial creditor (STCI Ltd.).
  • ₹10,00,000 reserved for any uncertain liabilities.
  • Claims of workmen, employees, and operational creditors were stated as NIL.

The tribunal noted that the corporate debtor has minimal assets, primarily a property in Mehsana, and no distribution has been made to stakeholders during liquidation. The corporate debtor is also involved in two pending criminal cases.

Final Outcome

The NCLT sanctioned and approved the Scheme of Compromise and Arrangement. The Liquidator is directed to:

1. File a copy of the order and the scheme with the Registrar of Companies within 30 days.

2. File a certified copy with the Superintendent of Stamps for adjudication of stamp duty within 60 days.

3. File a Final Report after implementation per Regulation 45 of the IBBI (Liquidation Process) Regulations, 2016.

The order clarifies that any reliefs and concessions sought in the scheme shall be dealt with as per law when the cause arises and are not deemed granted by this approval. It also directs the newly constituted board to cooperate with any ongoing investigations against erstwhile promoters or management.

Topics: Insolvency Resolution, Compromise Scheme, NCLT Order