NCLT Orders Surplus CIRP Profits to Financial Creditors, Aligning with Resolution Plan Terms

Kalyan Janata Sahakari Bank Ltd. Vs Arun Kapoor (NCLT Mumbai) In a recent judgment by the National Company Law Tribunal (NCLT) Mumbai, the case of Kalyan Janata Sahakari Bank Ltd. Vs Arun Kapoor addressed a critical aspect of Corporate Insolvency Resolution Process (CIRP) – the allocation of profits. The tribunal’s ruling sheds light on the distribution of profits during the CIRP period, particularly when the Resolution Plan and Request for Resolution Plan (RFRP) are silent on the matter. Detailed Analysis The crux of the matter revolved around the utilization of profits accrued during th...