NCLT Approves ₹7.42 Crore Resolution Plan For Central Departmental Stores

The Mumbai bench of the National Company Law Tribunal (NCLT) has approved a resolution plan of ₹7,42,77,830 for Central Departmental Stores Private Limited, submitted by Fincare Enterprises.

The resolution plan was approved on July 2, 2026, by a bench comprising Member (Technical) Prabhat Kumar and Member (Judicial) Sushil Mahadeorao Kochey. The plan was found to be compliant with the requirements of the Insolvency and Bankruptcy Code (IBC) and the Corporate Insolvency Resolution Process (CIRP) Regulations.

The Committee of Creditors (CoC) had approved the plan with a 100% voting share. The approved plan has a total value of ₹7.42 crore, comprising a cash component of ₹1.24 crore and recoveries at actuals. Central Bank of India, the financial creditor, is to receive an upfront payment of ₹1.2375 crore, after adjustment towards the CIRP cost, along with recoveries from the proposed sale of shares held in Niyman Mall Management Pvt. Ltd. and recoveries from avoidance transactions.

The admitted claims against the corporate debtor stood at about ₹560.57 crore, including ₹381.62 crore in corporate guarantee claims and ₹178.94 crore towards interest and penalty. However, the resolution professional rejected these claims, and the approved plan is significantly lower.

The company's fair value was assessed at ₹20.80 crore, while its liquidation value was ₹16.37 crore. The difference in the recovery amount can be attributed to the valuation amount of the company being lesser than the actual claim amount.

The Corporate Insolvency Resolution Process (CIRP) of Central Departmental Stores commenced on September 24, 2024, following the admission of a Section 7 petition. The CoC comprised only Central Bank of India, an unsecured financial creditor. Two resolution applicants submitted plans, with Fincare Enterprises ultimately emerging as the successful applicant.

The approved resolution plan is a significant development in the insolvency resolution process of Central Departmental Stores. The plan aims to provide a viable solution to the company's debt woes, while also ensuring that the interests of the creditors are protected.

The NCLT's approval of the resolution plan is a positive step towards resolving the insolvency of Central Departmental Stores. The plan's implementation will be closely watched by stakeholders, including the creditors and the company's management.

In conclusion, the NCLT's approval of the resolution plan for Central Departmental Stores is a significant development in the insolvency resolution process. The plan's implementation will have important implications for the company's creditors and stakeholders.

The approval of the resolution plan also highlights the importance of the Insolvency and Bankruptcy Code (IBC) in providing a framework for resolving insolvency cases in a timely and efficient manner. The IBC has been instrumental in promoting transparency and accountability in the insolvency resolution process, and its provisions have been widely hailed as a major reform in the Indian bankruptcy landscape.

Overall, the NCLT's approval of the resolution plan for Central Departmental Stores is a positive step towards promoting economic growth and stability in India. The plan's implementation will be closely watched by stakeholders, and its success will have important implications for the Indian economy as a whole.

The resolution plan's approval is also a testament to the effectiveness of the NCLT in resolving insolvency cases. The tribunal's decision to approve the plan is a significant development in the insolvency resolution process, and it highlights the importance of the NCLT in promoting transparency and accountability in the Indian bankruptcy landscape.

In the end, the approval of the resolution plan for Central Departmental Stores is a significant development that will have important implications for the company's creditors and stakeholders. The plan's implementation will be closely watched, and its success will be a major milestone in the insolvency resolution process.