Authority: National Company Law Tribunal (NCLT), Kolkata Bench

Order Date: 12 June 2026

Case Overview

This application was filed by the Resolution Professional (RP), Mr. Swapnil Jain, under Section 30(6) and 31 of the Insolvency & Bankruptcy Code, 2016, seeking approval of a resolution plan submitted by Mrs. Sarika Maiwall for Bengal Emta Coal Mines Limited (the Corporate Debtor). The Corporate Debtor is a joint venture formed with West Bengal Power Development Corporation Limited (WBPDCL) and Durgapur Projects Limited (DPL) for developing and operating coal mines allotted to WBPDCL. It has been under Corporate Insolvency Resolution Process (CIRP) since 30 June 2022. The principal dispute centered on the feasibility and bona fides of a resolution plan that proposed a minimal payout against massive admitted claims and involved significant unresolved receivables and contingent liabilities.

The bench identified several critical issues. The resolution plan proposed a total payout of only ₹86 lakhs against admitted claims totaling ₹299.78 crore. The breakdown of admitted claims and plan provision was:

  • Secured Financial Creditors: Admitted claim of ₹30.01 crore; provision of ₹51 lakhs.
  • Unsecured Financial Creditors: Admitted claim of ₹114.64 crore; provision of ₹0.
  • Operational Creditors:
  • Government: Admitted claim of ₹87.01 crore; provision of ₹10 lakhs.
  • Suppliers of goods and services: Admitted claim of ₹9.82 crore; provision of ₹5 lakhs.

The bench noted two major unresolved financial complexities affecting the Corporate Debtor's value. First, a receivable of approximately ₹197.90 crore from WBPDCL (₹194.29 crore) and DPL (₹3.48 crore) remains disputed and unreconciled due to missing records, with WBPDCL even claiming the Corporate Debtor owes it money. Second, a massive contingent liability of ₹1,752 crore exists from an additional levy imposed by the Supreme Court in 2014, which is under dispute and subject to contempt proceedings (CONMT.PET.(Crl.) No. 000002/2015). This levy also blocks the receipt of ₹151.80 crore in compensation for land and mine infrastructure under the Coal Mines (Special Provisions) Act, 2015.

Further process irregularities were highlighted. The RP and their Process Consultant had allegedly funded the Earnest Money Deposit (EMD) payable by the Successful Resolution Applicant (SRA), which was deemed unusual. The approval process by the Committee of Creditors (CoC) was also questioned. Minutes from the 8th CoC meeting on 15 March 2023 showed dissatisfaction with the financial proposal, and a liquidation proposal was mooted. However, a revised proposal from the SRA received via email the next day (16 March 2026) was approved by the CoC on the same day with no recorded deliberations on the revisions, primarily because it was the only plan available.

Final Outcome

The NCLT Bench dismissed the application (IA (IB)/602(KB)2023) for approval of the resolution plan. The bench found the plan unworthy of approval due to the meager payout against huge admitted debts, the existence of significant unresolved receivables and liabilities, and a lack of bona fides in the conduct of the process, particularly the CoC's approval of a revised plan without documented deliberation. The main insolvency petition (CP (IB)1699(KB)2018) was listed for the next hearing on 21 July 2026.

Topics: Insolvency Resolution, Coal Mining, NCLT Proceeding