NCLT junks ICICI Bk plea vs lower payout in IBC plan for Rajesh Construction
This story was originally published at 20:00 IST on 1 August 2025
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NEW DELHI – The Mumbai bench of the National Company Law Tribunal on Friday rejected ICICI Bank's plea to allow the bank to intervene and reject a resolution plan for Rajesh Construction Co. Pvt. Ltd., which gave the bank a lower payout as compared to other creditors. According to ICICI Bank, it got a payout of INR 29.9 million against its total admitted claims of INR 2.99 billion. At the same time, Shapoorji Pallonji Finance Pvt. Ltd. was offered INR 239.2 million for its total admitted claims of INR 239.2 million.
"... we are of the considered opinion that the applicant has failed to establish any reason or their locus to be the intervener in the RP (resolution professional) application. Further, the committee of creditors, in the exercise of its commercial wisdom, has approved the resolution plan by a majority vote share of 86.41%," the tribunal said.
The tribunal had in 2021 admitted a petition by Shapoorji Pallonji to start insolvency proceedings against Rajesh Construction and a resolution plan submitted by Kamleshkumar Vrajlal Dhulia was approved by the committee of creditors in 2023. Thereafter, an application by the resolution professional seeking approval of the Dhulia proposal was filed in the tribunal.
ICICI Bank had argued that a dissenting financial creditor ought to receive at least an amount which such a creditor would receive in the event of the liquidation of a corporate debtor. ICICI Bank challenged the resolution plan on the ground that it contravened the fair and equitable principle under Section 30 and the distribution mechanism under Section 53 of the Insolvency and Bankruptcy Code.
On Friday, shares of ICICI Bank ended 0.7% lower at INR 1,471.60 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Saji George Titus
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