Case Overview

This order addresses three interconnected applications (IA No. 70/ND/2024, IA 1337/ND/2025, and IA 5601/ND/2024) in the main company petition CP(IB)-263/ND/2023 filed by Aar Kay Industries against Jatalia Global Ventures Ltd under Section 7 of the Insolvency and Bankruptcy Code, 2016.

The corporate insolvency resolution process (CIRP) was initiated against Jatalia Global Ventures Ltd on 07.03.2024, with Mr. Mohd Nazim Khan appointed as Resolution Professional. The Resolution Professional received 27 expressions of interest, which were narrowed down to 13 prospective resolution applicants, including Norfolk Technology Services Limited, which ultimately submitted the successful resolution plan.

The Committee of Creditors (CoC) approved Norfolk's resolution plan with 100% voting share on 11.11.2024. The plan provides for a total resolution amount of ₹6,36,91,266.61, which represents 316.10% of the fair value (₹2,01,39,000) and 379.00% of the liquidation value (₹1,67,98,000) of the corporate debtor.

Key provisions of the approved resolution plan include:

  • Payment of unpaid IRP costs of ₹35,00,000 (with provision for actuals if higher)
  • Full repayment (100%) to all financial creditors except related parties, totaling ₹2,27,49,238
  • Payment of 1% to related party financial creditor Anil Kumar Jain (₹62,410 against admitted claim of ₹62,40,974)
  • Payment to operational creditors at liquidation value totaling ₹63,79,618.61 (approximately 1% of admitted claims)
  • Constitution of a Monitoring Committee comprising representatives from the resolution applicant and financial creditors
  • Issuance of 62,69,127 equity shares to Norfolk Technology Services
  • Strategic investor infusion of up to ₹8,00,00,000

The tribunal also addressed two other applications:

1. IA 1337/ND/2025: Recovery application for ₹92,41,415 from Gokul Exim Private Limited based on a settlement agreement dated 15.09.2021

2. IA 5601/ND/2024: Challenge by prospective resolution applicant Ravikumar Gaurishankar Patel alleging procedural irregularities in the CIRP process

Final Outcome

IA-70/2024: The resolution plan submitted by Norfolk Technology Services Limited is approved. The plan is binding on the corporate debtor, its employees, members, creditors, guarantors, and other stakeholders under Section 31(1) of the IBC.

IA 1337/2025: Gokul Exim Private Limited is directed to pay the outstanding amount of ₹92,41,415 to the GST Department (as creditor of Jatalia Global) within 60 days for distribution to unrelated creditors as per the waterfall mechanism.

IA 5601/2024: The application challenging the transparency of the CIRP process is rejected, with the tribunal finding no merit in the allegations against the Resolution Professional.

The moratorium order under Section 14 ceases to have effect immediately. The Successful Resolution Applicant must obtain necessary approvals under applicable laws within one year from the approval date. The Monitoring Committee must file monthly progress reports on implementation.

Topics: Insolvency Resolution, Committee of Creditors, NCLT Approval