Disclosure of NCLT Order dated 11th May 2026 approving the resolution plan
MORARJEE · price
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The Hon'ble NCLT Mumbai Bench has approved the Resolution Plan submitted by Shriniwas Spintex Industries Private Limited for Morarjee Textiles Limited under the Insolvency and Bankruptcy Code. The CIRP was initiated on 9th February 2024 based on an Axis Bank petition. The resolution plan worth INR 156 crores was approved by 75.61% voting share of the Committee of Creditors. Secured financial creditors will receive INR 130.02 crores, while unsecured financial creditors get only INR 0.39 crores (0.07% of admitted claims of INR 157.66 crores). The resolution applicant will infuse INR 25 crores as working capital, including INR 9 crores as fresh equity. An objection by ACT Fininvest Ltd challenging the unequal treatment of unsecured creditors was dismissed by the NCLT.
Shareholders face significant dilution as promoter shareholding will be extinguished and existing shareholders will see their holdings reduced in a 1:30 ratio. The company will exit insolvency proceedings under new management controlled by Shriniwas Spintex Industries.