NCLT Mumbai Approves Ashdan Properties' Resolution Plan for Indo Global Soft Solutions

Tribunal Emphasizes Compliance with Insolvency and Bankruptcy Code, Ensures Stakeholder Obligations

The National Company Law Tribunal (NCLT) Mumbai has approved the resolution plan submitted by Ashdan Properties Private Limited for the beleaguered Indo Global Soft Solutions and Technologies Private Limited. The approval, granted on November 25, 2025, came after a comprehensive evaluation of the resolution plan in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC).

The resolution plan was approved by a unanimous 100% voting share of the Committee of Creditors (CoC) of Indo Global, marking a significant step towards the resolution of the company's insolvency proceedings. The plan was submitted by Ashdan Properties, a well-regarded player in the real estate sector, known for its strategic acquisitions and project implementations.

The NCLT, comprising Shri Anil Raj Chellan and Shri K.R. Saji Kumar, underscored its role in ensuring that the resolution plan complied with Section 30(2) of the IBC. The Tribunal highlighted that its authority is limited to confirming compliance with the statutory requirements and that it cannot modify the plan approved by the CoC in its commercial wisdom.

Key highlights of the approved resolution plan include the allocation of Rs. 145.26 crore towards the resolution amount, with specific provisions for the payment of insolvency resolution process costs, financial creditors, and operational creditors. The plan also includes a strategic capital restructuring, leading to the issuance of equity shares to Ashdan's subsidiary, Magnite Properties Private Limited, facilitating the acquisition of up to 100% of Indo Global's shares.

The resolution plan binds all stakeholders, including government entities, creditors, and employees, effectively extinguishing any claims not included in the plan, as per the Supreme Court's ruling in Ghanshyam Mishra And Sons Private Limited v. Edelweiss Asset Reconstruction Company Limited. This ensures that no proceedings can be initiated on claims not part of the approved plan, providing a 'clean slate' for the corporate debtor.

The Tribunal reiterated the importance of adherence to the IBC provisions, citing past judgments, including K. Sashidhar v. Indian Overseas Bank, which delineate the limited scope of judicial intervention in CoC-approved plans.

As part of the implementation, a Monitoring Committee will oversee the execution of the resolution plan. The Tribunal also advised the resolution applicant to seek necessary statutory approvals to ensure smooth execution of the plan, while highlighting that any pre-existing offences by the corporate debtor cease with the plan's approval.

With this landmark judgment, the NCLT Mumbai has paved the way for the revival of Indo Global Soft Solutions, while reinforcing the importance of compliance and procedural integrity in insolvency resolutions.

Bottom Line:

Approval of Resolution Plan under Insolvency and Bankruptcy Code (IBC), 2016 - Tribunal's role limited to ensuring compliance with Section 30(2) and other provisions of the Code. Resolution Plan binds all stakeholders, and claims not part of the plan are extinguished.

Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Sections 14, 30(2), 30(6), 31, 32A, 43, 45, 66.

Mr. Ravi Sethia v. Ashdan Properties Private Limited, (NCLT)(Mumbai) : Law Finder Doc Id # 2819745