NCLT Approves HMD Industry Resolution Plan for Krosslink Infrastructure
The National Company Law Tribunal (NCLT), Mumbai Bench-I, has approved the resolution plan submitted by HMD Industry for Krosslink Infrastructure Limited. The NCLT order dated 18 August 2026 in IA (IBC) (Plan) No. 130 of 2025 in CP (IB) 308 of 2023, passed by Shri Prabhat Kumar (Member, Technical) and Shri Sushil Mahadeorao Kochey (Member, Judicial), has been published on the Insolvency and Bankruptcy Board of India (IBBI) website.
The application was filed by resolution professional Anil Kumar Dad under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Regulation 39(4) of the CIRP Regulations, seeking approval under Section 31(1). HMD Industry submitted the plan through its partner Deep Patel.
How the CIRP ran
Krosslink Infrastructure was admitted into the corporate insolvency resolution process (CIRP) on 2 November 2023 on a Section 7 petition. The public announcement was made on 7 November 2023, claims were invited up to 16 November 2023 and the Committee of Creditors (CoC) was constituted on 6 December 2023. Starwort Engineers Private Limited was the sole financial creditor with 100% of the voting share.
The first Form G, issued on 6 January 2024, drew no expression of interest within the deadline. After HMD Industry sent an EOI on 15 October 2024, the CoC approved revised eligibility criteria and a second Form G was issued on 31 October 2024. The request for resolution plans went out on 24 November 2024 with a submission date of 24 December 2024. The CIRP period was extended, and time was excluded, through several NCLT orders.
Plan approved twice by the CoC
The CoC first approved the HMD Industry plan with 100% votes, with e-voting closing on 29 December 2024. The tribunal then required a valuation of the corporate debtor's assets, so the plan was withdrawn for reconsideration. Two IBBI-registered valuers were appointed on 29 September 2025. The order records a fair value of ₹7,55,000 and a liquidation value of ₹7,75,000, derived from securities and financial assets and used to meet CIRP costs. At its 11th meeting on 8 October 2025, the CoC considered the valuation reports and again approved the plan with 100% votes, with voting closing on 13 October 2025.
What creditors get
| Stakeholder | Admitted amount (₹) | Proposed payment (₹) | Share |
|---|---|---|---|
| Unsecured financial creditor | 11,98,45,510 | 15,00,000 | 1.06% |
| Government dues | 1,15,156 | 1,151 | 1% |
| Other operational creditors | 74,95,94,896 | 50,000 | 0.02% |
| Total | 86,95,55,562 | 15,51,151 | 0.18% |
CIRP costs are payable at actuals and in priority to other debts. All payments fall due within 30 days of the effective date, the date of NCLT approval. HMD Industry furnished a performance security of ₹4,00,000. Existing equity shares stand extinguished without payment, 10,000 new equity shares of ₹10 each are to be issued, and the existing board is deemed to have resigned, with a new board to be appointed within 30 days. The plan runs a 60-day implementation period under a three-member monitoring committee, which dissolves once the upfront payments are made.
Implementation only by HMD Industry
The plan referred to implementation through an implementing entity or subsidiaries, but did not define "implementing entity" and no such person had been nominated by the final hearing. The bench therefore directed that the plan "shall be implemented by the Resolution Applicant only whereby the Resolution Applicant shall hold more than 50% of the capital of the Corporate Debtor, directly or indirectly."
Reliefs tested against Ghanshyam Mishra
The tribunal dealt with the reliefs sought in line with the Supreme Court's ruling in Ghanshyam Mishra and Sons Private Limited v. Edelweiss Asset Reconstruction Company Limited. Claims not in the plan stand extinguished, and no tax, demand or penalty for the period up to approval can be enforced. Carry forward of losses, unabsorbed depreciation and indirect tax credits remains open to examination by the tax authorities. Any debt-to-equity conversion is subject to Companies Act, FEMA and income-tax scrutiny. Reliefs not specifically dealt with are deemed rejected unless permitted by Ghanshyam Mishra or the Code.
Why the plan was approved
The resolution professional filed a compliance certificate in Form H and verified HMD Industry's Section 29A affidavit. Relying on K. Sashidhar v. Indian Overseas Bank, the bench held that the CoC's assessment of feasibility and viability is within its commercial domain and that no material warranted interference. It found the plan compliant with Section 30(2) and Regulations 37, 38, 38(1A), 38(1B) and 39(4), approved it under Section 31 and lifted the Section 14 moratorium. The resolution professional must send the CIRP records and the plan to IBBI.
For insolvency professionals, the order shows two things: a tribunal can insist on valuation even after a unanimous CoC vote, and an undefined implementing-entity structure can be narrowed to the resolution applicant itself.
Updated on 27 September 2026: linked the NCLT order on the IBBI website and added the bench, case numbers, Form G history, valuation figures, the full payment table, capital and board changes, the reliefs ruling and the monitoring committee terms; removed statements not found in the order.
