NCLT approves Orkus Private Limited's resolution plan
The resolution plan submitted for Orkus Private Limited under the insolvency resolution process has received final approval from the tribunal. The Committee of Creditors had already approved the proposal with a 100 percent voting share at its meeting in September 2024, making its implementation binding on the company and its associated stakeholders.
Highlights
- NCLT approved Orkus Private Limited's resolution plan under the Insolvency and Bankruptcy Code, 2016 in CP (IB) No. 453/ND/2022.
- The Committee of Creditors approved the resolution plan with a 100 percent voting share at its eighth meeting on 24-25 September 2024.
- Following clarification of GST claims, the tribunal ordered that Orkus Private Limited, its creditors and all stakeholders are bound to implement the plan.
This article was translated from the original. Read the original version by our correspondent here.
Approval and process of the resolution plan
As stated by the Insolvency and Bankruptcy Board of India, in CP (IB) No. 453/ND/2022, filed by JPM Industries Limited as the operational creditor, Ajay Gupta, the resolution professional for Orkus Private Limited, sought approval of the resolution plan submitted on behalf of Satendra Kumar Gupta. The application was filed under IA-61/2024, and the tribunal found that the plan complies with the provisions of the Insolvency and Bankruptcy Code, 2016.At its eighth meeting, held on 24-25 September 2024, the Committee of Creditors approved the plan with a 100 percent voting share. Clarifications were also provided during the proceedings regarding discrepancies identified in GST claims, following which the distribution amount among creditors was clarified.
Impact on creditors and stakeholders
The tribunal stated that the resolution plan meets the standard of judicial scrutiny, following which the application was approved. With this order, Orkus Private Limited, its creditors and other related stakeholders are bound to implement the plan.The decision marks the stage in India's insolvency resolution framework at which a restructuring plan becomes binding after receiving judicial backing following creditor approval. The clarification relating to GST claims also indicates that disputes or ambiguities over the distribution structure are being addressed before final approval.
Our previous report highlighted the prospects of bringing petroleum products under the GST framework and emphasized state consent as a decisive condition. It also noted that the government is currently focusing on expanding the taxpayer base and making the system more stable and reliable through the GST Council's 12-member standing committee, rather than making major changes to tax rates.
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