NCLT Mumbai Approves ₹96.81 Crore Resolution Plan for C & M Farming Ltd; Supreme Capinfra Takes Over

The National Company Law Tribunal, Mumbai Bench, has approved the resolution plan submitted by Supreme Capinfra Private Limited for C & M Farming Limited under Section 31 of the Insolvency and Bankruptcy Code, 2016, bringing the corporate insolvency resolution process to a close

100% CoC Approval; Structured Infusion and Stakeholder Treatment

The CIRP was initiated on 21 March 2024. The Committee of Creditors, comprising Omkara Assets Reconstruction Pvt. Ltd. as the sole financial creditor with 100% voting share, ultimately approved Supreme Capinfra’s plan with 100% votes after multiple extensions and a challenge mechanism process. The approved plan provides for a total infusion of ₹96.81 crore, to be brought in three tranches within 270 days from approval. Secured financial creditors are to receive approximately 99% of their admitted claims. Employees are to be paid 100% of admitted dues within 90 days, while government and other operational creditors are to receive a reduced payout in accordance with the commercial decision of the CoC.The Successful Resolution Applicant furnished a ₹3.85 crore performance bank guarantee and deposited ₹1 crore as earnest money. The plan also provides for capital reduction, cancellation of existing equity, and issuance of 10,000 new equity shares to the SRA, resulting in transfer of control.

Limited Judicial Review; Reliefs and Section 32A Protection

Relying on K. Sashidhar v. Indian Overseas Bank, the Tribunal reiterated that its jurisdiction under Section 31 is confined to examining compliance with Section 30(2), and does not extend to reviewing the commercial wisdom of the CoC. The Tribunal approved the plan subject to standard clarifications on reliefs and concessions. It held that exemptions from stamp duty, registration charges and statutory dues are not automatic and must be sought from competent authorities. Protection under Section 32A was extended to the new management for offences committed prior to commencement of CIRP.

With approval of the plan, the moratorium under Section 14 stands lifted and a Monitoring Committee has been constituted to oversee implementation.