NCLT Order on Exotic Buildcon Resolution Plan Clarifications

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

Order Date: 11 June 2026

Case Overview

This matter pertains to an application (IA-76/2025) concerning the resolution plan for Exotic Buildcon Private Limited, which is undergoing Corporate Insolvency Resolution Process (CIRP). The Tribunal had heard arguments on the plan application on 22 April 2026 and had subsequently reserved its order. However, in an order dated 08 May 2026, the Bench identified several aspects requiring clarification from the applicant before a final decision could be made. The principal issues and regulatory concerns raised by the Tribunal involve the process and financial structure of the proposed resolution plan.

The key clarifications sought are:

  • The number of Expressions of Interest (EoIs) received following the publication of the first and second Form G advertisements and the specific reason for issuing a second Form G.
  • A clear explanation of the source of funding for the Successful Resolution Applicant (SRA), which was vaguely stated as being either debt or equity.
  • The provisions outlined in the plan for making payments to any dissenting financial creditors.
  • A detailed explanation of the proposed infusion structure, which involves the allotment of 427 shares of ₹10 each to unsecured financial creditors. This allotment is to be made at a premium of ₹99,990 per share. Subsequently, these shares are to be bought back at a price of ₹13,584 per share. The Tribunal has directed the applicant to explain how this specific structure complies with the provisions of the Income Tax Act, 1961.

The applicant failed to file the required affidavit with these clarifications within the one-week deadline stipulated in the 08 May 2026 order.

Final Outcome

The NCLT has reserved its final order on the resolution plan application (IA-76/2025). In the interest of justice, the applicant has been granted a further two weeks from the date of this order (11 June 2026) to file a fresh affidavit providing the clarifications as directed. The final ruling on the approval or rejection of the resolution plan is contingent upon the satisfactory submission and review of this clarified information.

Topics: Insolvency Resolution, NCLT Proceeding, Corporate Debt