NCLT Approves ₹17.75-Crore Resolution Plan For Zicom, Ending Insolvency Proceedings

Mumbai, September 26, 2026: The National Company Law Tribunal (NCLT) has approved a Rs 17.75-crore resolution plan submitted by Advaita Trading Private Limited for listed electronic security solutions company Zicom Electronic Security Systems Ltd, bringing an end to the company’s prolonged insolvency proceedings.

Zicom’s Corporate Insolvency Resolution Process (CIRP) commenced on July 29, 2022, after the NCLT admitted an insolvency petition filed by IDBI Bank. The company, incorporated in 1994, is engaged in the business of electronic security solutions.

The resolution plan was approved by the Committee of Creditors (CoC) with a 75.46% voting share. The voting process on the revised plan concluded on February 18, 2026.

Central Bank Seeks Modification

The Central Bank of India, a dissenting financial creditor, had sought modification of the distribution mechanism, particularly in relation to the amount payable to it in view of its security interest. The tribunal observed that the issue would be governed by a separate order passed on the same day.

“In view of the foregoing discussion, we are satisfied that the CoC has duly reconsidered and deliberated upon all the material aspects highlighted by this Tribunal in its order dated 03.06.2025, pursuant to which the Resolution Plan was remitted to the CoC for reconsideration….The Central Bank of India, being a dissenting Financial Creditor, has also filed an application seeking reconsideration and modification of the distribution mechanism provided under the Resolution Plan. The Applicant essentially seeks a direction that the amount payable to it should not be less than the liquidation value attributable to its security interest, having regard to the nature and priority of its first charge over the secured assets. The Applicant further seeks recomputation of the minimum amount payable to dissenting Financial Creditors under Section 30(2)(b) of the Code, after taking into consideration the priority and value of their respective security interests in accordance with the waterfall mechanism contemplated under Section 53 of the Code,” the order copy reads.

Resolution Plan Meets Requirements

The tribunal noted that the resolution plan provides for payment of the CIRP costs in priority to all other debts and deals with the claims of operational creditors in accordance with Section 30(2)(b) of the IBC and the applicable CIRP Regulations.

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The tribunal also recorded that the Resolution Professional had certified the eligibility of Advaita Trading under Section 29A of the IBC and that the Due Diligence Certificate supported its eligibility.

It further held that the plan complied with the requirements of Section 30(2) of the IBC and the applicable provisions of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

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