Mohit Chawla Vs Compact Capital Limited (NCLT Chandigarh)
NCLT Orders Liquidation of J.R. Agrotech Pvt. Ltd. After Successful Resolution Applicant Failed to Implement Approved Resolution Plan
The application was filed by Mr. Mohit Chawla, acting as the Monitoring Agent and erstwhile Resolution Professional of J.R. Agrotech Private Limited, under Sections 33(3) and 33(4) of the Insolvency and Bankruptcy Code, 2016 (IBC). The application sought initiation of liquidation proceedings against the Corporate Debtor on the ground that the Successful Resolution Applicant (SRA), M/s Compact Capital Limited, had failed to implement the resolution plan approved by the Adjudicating Authority on 23.04.2025.
The Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor commenced pursuant to an application filed by Oriental Bank of Commerce under Section 7 of the IBC. The CIRP was admitted on 27.07.2018, and the Applicant was subsequently appointed as Resolution Professional on 12.10.2018.
The Committee of Creditors (CoC) was constituted, comprising secured financial creditors and operational creditors. Following the publication of invitations for expressions of interest, two prospective resolution applicants submitted plans. After deliberations over several meetings, the CoC approved the resolution plan submitted by the Respondent/SRA with 91.95% voting share in the 12th CoC meeting held on 05.11.2019.
The approved resolution plan, which was subsequently sanctioned by the Adjudicating Authority on 23.04.2025, had a total value of ₹46 crores. Out of this amount, ₹33.50 crores was required to be paid upfront according to a specified timeline beginning from the date of approval. The first instalment of ₹15.20 crores, inclusive of the earnest money deposit, performance bank guarantee, and available cash equivalents of the Corporate Debtor, was payable within three days of the approval order.
