Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2025 Supreme(Online)(NCLT) 8289

NATIONAL COMPANY LAW TRIBUNAL
MR. LABH SIGH, J, MS. REKHAKANTILAL SHAH, T
CFM ASSET RECONSTRUCTION PVT LTD. – Appellant
Versus
MOTIJUG AGENCIES LIMITED – Respondent
IA (IBC)(Plan)/27/2025 | CP (IB) No.91/2022

Advocates:
For the Appellants/Petitioners: Mr. Shaunak Mitra, Ms. Sannoyee Chakraborty, Ms. Manavii Gupta, Mr. Subhankar Nag, Mr. Avishek Guha
For Respondents: Ms. Arunika Dutta, Mr. Siddhartha Chatterjee, Mr. Abir Lal Ghosh, Mr. Janta Monga, Mr. Pradeep Sancheti, Mr. Anirban Basu

Upon approval of a resolution plan, all past corporate liabilities, including criminal ones, are extinguished, allowing new management to assume control without prior burdens.

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 30(6), 31 - Approval of Resolution Plan - Corporate Debtor entered CIRP and Resolution Plan approved by Committee of Creditors with 100% vote - Compliance with IBC provisions required for taking control over the Corporate Debtor through Resolution Professional. (Paras 1-19)

(B) Resolution Process - Extinguishment of liabilities - Upon approval of resolution plan, all past liabilities including criminal liabilities are wiped off while new management assumes control after the approval. (Paras 11.1, 11.2)

Facts of the case:
CFM Asset Reconstruction Pvt Ltd filed for insolvency against Motijug Agencies Ltd, leading to the Corporate Debtor's admission in CIRP. The successful resolution applicant submitted a plan, approved unanimously by the creditors.

Findings of Court:
The resolution plan was approved for an amount of Rs. 1,10,00,000/- with a mandate for personal guarantees to be invoked.

Issues: Whether the resolution plan met legal requirements for approval while ensuring extinguishment of prior claims.

Ratio Decidendi: The tribunal affirmed that upon approval, past corporate liabilities are extinguished, ensuring a clear slate for the new management.

Result: The Resolution Plan was approved and all pending applications disposed.

Table of Content
1. approval process for insolvency resolution. (Para 1 , 2 , 3)
2. details of resolution plan implementation. (Para 5)
3. scope of responsibilities and liabilities post-approval. (Para 11 , 12)

ORDER

LABH SINGH, JUDICIAL MEMBER

1. The present interlocutory application bearing IA (IBC) (Plan) No. 27/KB/2025 was filed on 24.9.2025 by CA Shantanu Brahma Resolution Professional ( for short ‘RP’) of Motijug Agencies Limited, the Corporate Debtor ( for ‘CD’) under the provisions of Sections 30 (6) and section 31 of the Insolvency & Bankruptcy Code, 2016 for short ‘IBC Code) read with Regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (for short ‘IBBI (CIRP) Regulation 2016’) for approval of the Resolution Plan submitted by Jaik Leasing and Commercial Investment Ltd, the Successful Resolution Applicant (SRA), as approved by the Committee of Creditors (CoC) with 100% vote.

2. Brief facts about Corporate Debtor and CIRP:

2.1 The underlying Company Petition in CP (IB) No. 91/KB/2022 was filed by CFM Asset Reconstruction Pvt Limited against Motijug Private Limited, the Corporate Debtor, under section 7 of the Insolvency and Bankruptcy Code 2016 and the Corporate Debtor was admitted in Corporate Insolvency Resolution Process (for short ‘CIRP process’) by this Tribunal vide order dated 08.01.2025.

2.2 Initially, Mr. Arun Kumar Gupta was appointed as the Interim Resolution Professional. This Tribunal, later on, appointed the applicant, CA Shantanu Brahma, as Resolution Professional of the Corporate Debtor vide order dated 20.02.2025 replacing erstwhile Interim Resolution Professional Mr. Arun Kumar Gupta.

3. Collation of Claims, Constitution of CoC, and Valuation:

3.1 The erstwhile IRP made public announcement on 10.01.2025 in “Business Standard” (English Edition) and “Ekdin” (Bengali Edition) newspapers regarding initiation of CIRP process and called proof of claims from the financial and operational creditors, workers and employees of the Company in the specified forms till 22^nd January 2025.

3.2 The CoC was constituted with sole Member, CFM Asset Reconstruction Pvt Ltd being the Secured Financial Creditor with 100% voting right in the CoC.

3.3 The applicant states that a total of ten (10) meetings have been held during CIRP period, as follows:

3.4 Registered Valuers, namely Mr. Asim Maity was appointed valuer for Plant & Machinery; AAA Valuation Professional LLP for Security & Financial Assets(SFA) and Plant & Machinery; and Mr. Ishan Tulsiyan was appointed as valuer for valuation of Security & Financial Assets(SFA); as resolved on 06.08.2025. It has been submitted that the COC has considered the Resolution Plan, keeping in view the Valuation Reports submitted by the Registered Valuers, named above. The summary of the Fair Value and Liquidation Value of the Corporate Debtor are as under:

Copy of the Valuation Reports has been annexed with the Application for approval of Resolution Plan as Annexure A-19, A-20, and A-21

3.5 Valuation of the Corporate Debtor, as further provided in Form H, is as follows:

3. Invitation for Resolution Plan, Evaluation a0nd Voting:

4.1. The Applicant submits that in terms of the provisions of Section 25(2)(h) of the Code read with Regulation 36A (1) of the IBBI (CIRP) Regulations 2016, invitations of Form ‘G’ for Expressions of Interest (for short “EoI”) from potential resolution applicants were issued. The Form ‘G’ was published on 07.04.2025 for submission of resolution plans for the Corporate Debtor. The last date for receipt of EoIs was 22.04.2025. This was published in “Business Standard” (English Edition) and “Ekdin” (Bengali Edition) newspapers. The notice was also published on the website of the Insolvency and Bankruptcy Board of India (hereinafter referred to as ‘IBBI’).

4.2. The Applicant submits that in response to the invitation for ‘EoI’, up to the last date, i.e. 22.4.2025, two ‘EoIs’ were received from Jaik Leasi