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Informist, Thursday, Mar. 12, 2026

 

NEW DELHI – The National Company Law Appellate Tribunal Thursday held Cosmic CRF Ltd. "ineligible" to propose a resolution plan for Amzen Transportation Industries Ltd. Noting that the debt-ridden Amzen Transportation's resolution professional has already received expressions of interest from four applicants, the appellate tribunal directed continuation of the insolvency proceedings to complete the process at the earliest.

 

"We find that Mr. Aditya Vikram Birla & others were the promoters and directors in many companies, which in turn were shareholders of Cosmic Ferro Alloys Limited with substantial interest, prior to the commencement of CIRP (corporate insolvency resolution process) and that entire debt in relation to the said debtor still remains outstanding after its declaration as NPA (non-performing asset) with the secured lenders apparently taking huge haircuts in the resolution process," the appellate tribunal said.

 

Further, Aditya Vikram Birla--not to be confused with the late industrialist--and other members of his family held majority stake and management control in Cosmic Ferro Alloys on the date when insolvency proceedings were instituted against the company. Birla and related parties also held direct controlling interest in companies that had extended corporate guarantees for loans of Cosmic Ferro Alloys and the appellate tribunal said it could find no record of payment towards such guarantees.

 

Section 29A of the Insolvency and Bankruptcy Code, 2016, prevents certain individuals--including wilful defaulters, undischarged insolvents, convicted persons, and those holding accounts that have been declared non-performing assets for a year or longer--from submitting resolution plans to get control of a defaulting company.

 

It noted that a complaint was filed by an organisation called Energy Watchdog, seeking a probe into transactions relating to Amzen Transportation. To complete the investigation, the appellate tribunal also directed the Insolvency and Bankruptcy Board of India to look into the insolvency process and other issues, particularly allegations of avoidance application, asset transfer, and shell company formation.

 

In 2022, the National Company Law Tribunal had admitted IDBI Bank's petition to start insolvency proceedings against Amzen Transportation. Thereafter, Cosmic CRF submitted a resolution plan for the debt-ridden company, but the company was declared ineligible by the committee of creditors of Amzen Transportation. 

 

Thursday, shares of Cosmic CRF ended 2.2% lower at INR 880.90 on the BSE. Shares of IDBI Bank ended slightly lower at INR 98.81 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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