Authority: National Company Law Tribunal, New Delhi Bench, Court-IV
Order Date: 08.06.2026
Case Overview
The National Company Law Tribunal (NCLT) heard an application (I.A. No. 4133/ND/2025) filed by Hukum Chand Gupta Fabrics Pvt. Ltd., the largest operational creditor of Bee K Bee Prints Pvt. Ltd. (Corporate Debtor) with an admitted claim of ₹9,18,11,557. The application challenged the resolution plan submitted by Urbtech Finvest Pvt. Ltd. and sought dismissal of the plan approval application (I.A. No. 30/2025), disclosure of correct asset information, fresh valuation, and fresh Form G publication.
The applicant alleged that the Information Memorandum (IM) prepared by the Resolution Professional was grossly deficient as it failed to disclose assets worth approximately ₹65.67 crore, including four prime land parcels fraudulently transferred by suspended directors prior to CIRP commencement. These included: Plot No. 162, DLF Industrial Area (708 sq. yds, ₹4.62 crore); Mohla factory land (3 acres, ₹8.82 crore); Plot Nos. 160 & 160A, DLF Industrial Area (1603.60 sq. yds & 780.60 sq. yds, ₹15.56 crore combined); and Plot No. 86/1, DLF Industrial Area (600 sq. yds, ₹3.92 crore). Additionally, ₹28.25 crore from preferential and related party transactions was not disclosed.
The tribunal noted that Urbtech Finvest Pvt. Ltd. (Resolution Applicant) was connected to DTH Masters Manufacturing Pvt. Ltd., which benefited from fraudulent sale deeds executed by suspended directors for Plot Nos. 160 & 160A. This relationship was not disclosed to the CoC. The resolution plan offered only ₹4.51 crore against actual assets worth ₹65.67 crore, providing operational creditors with merely 0.001% recovery (₹5 lakh) against their admitted dues of ₹34.68 crore, violating Section 30(2)(b) of the IBC.
Final Outcome
The NCLT allowed the application and remanded the resolution plan back to the Committee of Creditors for fresh consideration. The CoC was directed to re-evaluate the assets and reassess the corporate debtor's value, taking into account the impact of avoidance transactions and all material developments, including the ₹53.14 crore directed to be restored to the corporate debtor through avoidance application orders dated 16.12.2025. The tribunal found that the resolution plan failed to account for material recoveries, artificially suppressed the corporate debtor's value, and violated the statutory mandate of value maximization under the IBC.
Topics: Insolvency Resolution, Asset Disclosure, Creditor Rights