Case Overview
This application was filed by Smt. Ramanathan Bhuvaneshwari, the Resolution Professional (RP) of M/s R.P. Info Systems Ltd. (Corporate Debtor/CD), under sections 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016 (IBC) seeking approval of the Resolution Plan submitted by the Successful Resolution Applicant (SRA), Consortium of Shri Malay Rohit Kumar Bhow jointly with Genex Enterprise.
The CD was admitted into Corporate Insolvency Resolution Process (CIRP) on 19 February 2024. The Committee of Creditors (CoC) comprised 11 Financial Creditors. The CIRP witnessed multiple extensions and litigation, including belated claims from Edelweiss Asset Reconstruction Company Ltd. (₹323.17 Crores) and an Operational Creditor, which were eventually condoned and admitted. After the initial resolution process failed to yield a viable plan, a second Form G was issued inviting plans for the CD as a whole or asset-wise resolution. The Resolution Plan by the consortium was ultimately approved by the CoC with 67.05% voting share on 29 May 2025.
The Resolution Plan proposes a total payout of ₹41.42 Crores against total admitted claims of ₹45,87,67,98,655/-, resulting in a significant haircut of approximately 99.15%. The plan provides for payment of CIRP costs (₹2.40 Crores) and Operational Creditors (₹1.02 Crores) within 50 days of NCLT approval. Financial Creditors are to receive ₹38.00 Crores, with ₹10.00 Crores paid within 50 days and the balance within 180 days. The plan value represents 88% of the liquidation value (₹44.41 Crores) and 66% of the fair value (₹59.47 Crores).
The SRA has submitted a performance security of ₹3.00 Crores. The plan includes provisions for the management of the CD, supervision by a Monitoring Committee, and the continuation of avoidance transaction applications under Section 66 of the IBC, with any recoveries to be passed through to secured financial creditors.
Final Outcome
The NCLT approved the Resolution Plan subject to specific observations and directions. The plan is binding on the CD, its employees, members, creditors, government authorities, guarantors, and other stakeholders. All claims not part of the resolution plan stand extinguished. The moratorium under Section 14 of the IBC ceases immediately. The RP is discharged, and all records are to be handed over to the SRA. The SRA must comply with all statutory obligations and seek necessary approvals within one year from the date of the order. The benefits and protections under Section 32A of the IBC are available to the CD for offenses prior to the commencement of CIRP, given the change in management.
Topics: Corporate Insolvency, Resolution Plan, Creditor Haircut