NCLT Mumbai Clears Medec Infra’s Resolution Plan for Vetshield International

Background

The Mumbai Bench of the National Company Law Tribunal has approved the resolution plan submitted by Medec Infra Private Limited for the revival of Vetshield International Pvt. Ltd., bringing the corporate insolvency resolution process (CIRP) to a close under the Insolvency and Bankruptcy Code, 2016. The insolvency proceedings were triggered on an application filed by Orbit Electro Equipments Pvt. Ltd., which had alleged default in payment of operational dues. Upon admission of the petition, the Tribunal declared a moratorium and appointed a Resolution Professional to take control of the corporate debtor, invite claims, and manage the business as a going concern during the resolution period. During the CIRP, claims from various creditors were collated and verified, including statutory dues asserted by the Maharashtra GST Department. The first round of resolution failed after the withdrawal of a prospective applicant, leading to a fresh invitation for plans. In the subsequent round, Medec Infra emerged as the only compliant resolution applicant, proposing a structured revival strategy aimed at stabilising Vetshield International’s operations and restoring its financial health.

CoC Approval, Financial Commitments and Tribunal’s Observations

The resolution plan envisages payment of around ₹27.43 lakh towards CIRP costs and creditor distributions, along with an infusion of ₹50 lakh over two years to support working capital needs and operational revival. The proposal also provides for transfer of management control to the resolution applicant and establishes a monitoring framework to ensure smooth implementation. The Committee of Creditors approved the plan with a unanimous 100 percent vote, reflecting complete commercial consensus. While sanctioning the plan under Sections 30(6) and 31(1) of the IBC, the NCLT observed that all statutory requirements had been fulfilled and that the plan complied with the CIRP Regulations. The Bench reiterated the settled position that its role is confined to examining legal compliance and that it cannot interfere with the commercial wisdom of the CoC once due process is followed. With the approval of the plan, the moratorium stands lifted, enabling Medec Infra to take over Vetshield International and implement the revival measures, thereby averting liquidation and advancing the IBC’s objective of value maximisation through resolution.