Mumbai, Dec 31: The National Company Law Tribunal (NCLT) has approved the resolution plan for Indian Refrigerator Company Limited, bringing it close to the conclusion of the corporate insolvency resolution process.
The plan, submitted by Klassic Wheels Limited, was approved by the tribunal after it received 100 per cent approval from the Committee of Creditors (CoC).
Insolvency proceedings initiated in August 2024
The insolvency proceedings against Indian Refrigerator Company were initiated on August 14, 2024, under Section 9 of the Insolvency and Bankruptcy Code, 2016, following a petition by Silveroak Home Appliances Private Limited. Neha Agarwal was appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional by the CoC.
Only one resolution plan received
Following the invitation for expressions of interest, two prospective resolution applicants came forward. However, only Klassic Wheels Limited submitted a resolution plan. After deliberations, the plan was revised and approved by the CoC in its meeting held on March 1, 2025.
Rs 16.10 crore to be infused under approved plan
Under the approved plan, Klassic Wheels Limited will infuse Rs 16.10 crore to settle the claims of creditors and meet insolvency resolution process costs. Unsecured financial creditors are to receive Rs 14 crore, amounting to about 85.39 per cent of their admitted claims, while operational creditors and statutory authorities will receive payments as provided in the plan. The successful resolution applicant has also furnished a performance bank guarantee of Rs 1.61 crore.
Profile of successful resolution applicant
M/s Klassic Wheels Limited (“SRA”) is a public limited company incorporated on August 9, 1994. The SRA is among India’s largest wheel manufacturers, producing high-quality steel and alloy wheels, sheet-metal parts, and related components for two-, three-, and four-wheelers across both ICE and EV segments.
The company operates advanced manufacturing facilities with an annual capacity of over 12 million steel and 3 million alloy wheels, supported by a workforce of more than 500 employees. It holds a strong national market presence and supplies major automotive OEMs, including Honda, Suzuki, Yamaha, Mahindra, Bajaj Auto, Royal Enfield, TVS, Ola, Ather, Piaggio, and others.
Tribunal reiterates primacy of CoC’s commercial wisdom
The tribunal observed that the resolution plan complied with all mandatory provisions of the Insolvency and Bankruptcy Code and the relevant regulations. It reiterated that the commercial wisdom of the CoC is paramount and that the adjudicating authority’s role is limited to examining compliance under Section 30(2) of the Code.
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Moratorium lifted, monitoring committee ordered
With the approval of the plan, the moratorium imposed under Section 14 of the IBC stands lifted. The NCLT directed the Resolution Professional to hand over all records and documents to the successful resolution applicant and ordered the constitution of a monitoring committee to oversee implementation of the plan. The order is binding on the corporate debtor, its creditors, employees, and all other stakeholders, including government authorities.
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