Advaita Trading's resolution plan for Zicom Electronic Security Systems approved by NCLT Mumbai

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Zicom resolution approval

Highlights

NCLT Mumbai Bench-1 approved Advaita Trading's resolution plan for Zicom Electronic Security Systems Limited on 24 September 2026.
With the order, the moratorium imposed under Section 14 of the Insolvency Code ends with immediate effect, and the plan is binding on all stakeholders.
The Tribunal ordered the applicant to monitor the implementation of the resolution plan and submit quarterly progress reports to the authority.

This article was translated from the original. Read the original version by our correspondent here.

Approval of the resolution plan and timeline

According to the order of the Insolvency and Bankruptcy Board of India, the National Company Law Tribunal, Mumbai Bench-1, approved the resolution plan submitted by Advaita Trading Private Limited for Zicom Electronic Security Systems Limited on 24 September 2026. The application was filed by the company's resolution professional, Chirag Shah, under Sections 30(6) and 31(1) of the Insolvency and Bankruptcy Code, 2016.

The order states that the resolution plan dated 24 December 2025, along with addendums dated 29 January 2026 and 26 March 2026, becomes effective and forms part of the order. The Tribunal also clarified that the plan is binding on the corporate debtor, its employees, members, creditors, central and state governments, local authorities, guarantors, and other relevant stakeholders.

Zicom Electronic Security Systems Limited is active in the electronic security solutions business in the Indian market. The corporate insolvency resolution process against the company began following an order dated 29 July 2022 in a case filed by IDBI Bank Limited.

Creditors, monitoring and sector impact

Case records show that the former resolution professional filed an application for approval of the plan following the 27th CoC meeting held on 28 August 2023. Later, at the 35th CoC meeting held on 12 June 2025, the plan was sent back for reconsideration in light of the Tribunal's observations, with the main concern being the plan's feasibility and implementation capability.

With the approval now granted, the moratorium imposed under Section 14 of the Insolvency Code ends with immediate effect. The Tribunal has directed the applicant to monitor the implementation of the plan and submit progress reports to the authority from time to time, preferably every quarter.

This decision advances a long-running resolution process in India's electronic security sector and provides clarity to creditors regarding the implementation phase. It also indicates that the Tribunal is prepared to move forward with restructured plans after objections related to feasibility have been addressed.

Our previous report covered the approval by NCLT Allahabad of the resolution plan in the corporate insolvency resolution process of Shandong Chunlong Group India Pvt. Ltd. It included the CoC's approval of the plan with a 79.87% voting share, the role of the resolution professional, and the conclusion that the approved plan complies with the provisions of the Code and addresses provisions related to stakeholders' claims/commitments and implementation.

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