Resolution Plan by Nakshatra Asset Ventures Limited sanctioned with 100% Committee of Creditors’ approval; Adjudicating Authority emphasizes limited judicial interference, statutory compliance, and detailed implementation roadmap
In a landmark decision dated May 22, 2026, the National Company Law Tribunal (NCLT), Cuttack Bench, sanctioned the resolution plan submitted by Nakshatra Asset Ventures Limited (Nakshatra), aimed at reviving Goyal Energy and Steel Private Limited (Corporate Debtor) under the Insolvency and Bankruptcy Code, 2016 (IBC). The case, initiated upon default of over Rs. 103 crore, witnessed an extensive Corporate Insolvency Resolution Process (CIRP) spanning nearly two years, with multiple extensions and iterations of resolution proposals.
The adjudicating authority underscored that its role was circumscribed to verifying statutory compliance with the IBC and related regulations, deferring to the commercial wisdom exercised by the Committee of Creditors (CoC). The CoC, composed primarily of Punjab National Bank and Union Bank of India with respective voting shares of 60.7% and 39.3%, approved Nakshatra’s plan with unanimous votes.
Key highlights of the approved resolution plan include a total resolution amount of Rs. 77 crores against admitted claims totaling Rs. 281.61 crores, implying a substantial haircut of approximately 71.95%. The plan prioritizes payment of CIRP costs (Rs. 2 crores) ahead of other creditors and proposes staggered payments to secured financial creditors, operational creditors, EPFO dues, and employees. All claims post-approval are to be extinguished, with comprehensive capital restructuring envisaged, including extinguishment of existing equity shares and fresh capital infusion by Nakshatra.
The plan also details the release of all securities, charges, and encumbrances upon payment completion, and mandates the formation of a Monitoring Committee chaired by the Resolution Professional to oversee implementation until effective control is handed over to the Resolution Applicant.
The NCLT reiterated key Supreme Court precedents emphasizing minimal judicial interference in the commercial decisions of the CoC, validating the plan’s adherence to Sections 30 and 31 of the IBC, as well as CIRP regulations. The tribunal noted the plan’s compliance with eligibility criteria under Section 29A and the absence of avoidable transactions under Sections 43, 45, 47, 49, 50, or 66 of the Code.
While several reliefs and waivers sought by the Resolution Applicant were not granted—particularly those requiring approvals from other governmental authorities—the tribunal left the door open for the applicant to approach competent authorities as per applicable laws. The moratorium imposed since the inception of CIRP is lifted with immediate effect, and the Resolution Professional is discharged upon handing over all records and control to the Resolution Applicant.
This decision marks a significant step towards the revival of Goyal Energy and Steel Pvt. Ltd., balancing the interests of creditors and stakeholders with the objective of preserving going concern value under the IBC framework.
Bottom line:-
Approval of Resolution Plan under Insolvency and Bankruptcy Code, 2016 is confined to statutory compliance, and commercial wisdom of Committee of Creditors (CoC) is paramount; judicial interference in commercial decisions is minimal and limited.
Statutory provision(s):
Insolvency and Bankruptcy Code, 2016 Sections 14, 16, 18, 21, 22, 24, 29A, 30(1), 30(2), 30(4), 30(6), 31(1), 32A, 43, 45, 47, 49, 50, 66;
IBBI (Insolvency Resolution Process of Corporate Persons) Regulations, 2016 Regulations 6, 13, 17, 27, 33, 35, 35A, 36A, 36B, 37, 38, 39;
Companies Act, 2013 Sections 42, 62(1)(c);
Employees' Provident Funds and Miscellaneous Provisions Act, 1956 Section 7A;
Income Tax Act, 1961 Sections 170, 281.
