Disclosure of NCLT Order dated 23rd September, 2025
Awaiting price reaction for this filing.
The NCLT Kolkata bench passed an order on 23rd September 2025 in the ongoing insolvency case (C.P. (IB)/891(KB)2020) against McNally Bharat Engineering Company Ltd, where Bank of India had admitted CIRP under Section 7 of the IBC. A resolution plan worth Rs. 155 crores was earlier approved in December 2023 with BTL EPC Ltd as the Successful Resolution Applicant (SRA). The SRA had defaulted on its payment obligations under the plan, triggering contempt proceedings and multiple applications. In this latest order, the NCLT allowed the SRA's plea for extension of time until 30th September 2025 to make the balance payment of Rs. 66.19 crores plus interest of Rs. 7.64 crores, but imposed a cost of Rs. 1 crore on the SRA to be paid to the PM's National Relief Fund. The contempt proceedings against the SRA and its representatives were dropped as lenders expressed satisfaction with the compliance and sought liberty to appropriate the deposited funds.
For shareholders, this order brings temporary relief as the threat of the CIRP being re-run has been pushed back, with the SRA getting more time to complete payments. However, the SRA's continued delays and the Rs. 1 crore penalty imposed by the NCLT signal ongoing governance and implementation challenges. If the SRA defaults again, lenders have been given liberty to revive the application to restart the entire insolvency process, keeping the stock under uncertainty.