Canara Bank Ltd. Vs Feno Plast Limited (NCLT Hyderabad)
The NCLT Hyderabad considered an application filed under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, read with Rule 11 of the National Company Law Tribunal Rules, 2016, by the Successful Resolution Applicant (SRA) of the Corporate Debtor. The applicant sought permission to undertake post-implementation capital restructuring, including reduction, consolidation and re-issuance of equity share capital, continuation of the Corporate Debtor’s listing on the stock exchange, continuation of public shareholding in a proportionately diluted manner, and consequential directions to BSE and other regulatory authorities for necessary approvals and compliances.
The applicant submitted that the Resolution Plan had been approved by the Tribunal on 22.01.2025 and had been successfully implemented. It had infused ₹76,52,82,382 through M/s. Bhavya Construction Private Limited and payments had been made to stakeholders, resulting in closure of the corporate insolvency resolution process. The approved Resolution Plan contemplated cancellation of existing share capital and delisting of the Corporate Debtor. However, the proposed delisting was not implemented and the applicant subsequently proposed continuing the listing of the Corporate Debtor’s shares, stating that continued listing would enhance enterprise value, provide liquidity to public shareholders, promote transparency and facilitate future fundraising.
