NCLT Approves HMD Industry Resolution Plan for Krosslink Infrastructure

The National Company Law Tribunal's Mumbai Bench-I has approved the resolution plan for Krosslink Infrastructure Limited submitted by HMD Industry, bringing a long-running corporate insolvency resolution process to the implementation stage. The order was pronounced on 18 August 2026 and was subsequently surfaced by the Insolvency and Bankruptcy Board of India in its current updates on 25 August.

The application was filed by resolution professional Anil Kumar Dad under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 read with Regulation 39(4) of the CIRP Regulations, seeking approval under Section 31(1). The plan had been submitted by HMD Industry through partner Deep Patel.

Plan received 100% CoC approval twice

The order records an unusual procedural history. The Committee of Creditors initially approved the HMD Industry plan with 100% voting share, with voting concluding on 29 December 2024. The plan was later withdrawn for reconsideration after the tribunal required valuation of the corporate debtor's assets.

Two IBBI-registered valuers were then appointed and their valuation reports were placed before the CoC. After considering the reports along with the plan in its 11th meeting on 8 October 2025, the CoC again approved the plan with 100% voting share, with the second voting process concluding on 13 October 2025.

Background of the CIRP

Krosslink Infrastructure entered CIRP following an NCLT order dated 2 November 2023 on a Section 7 petition. The public announcement was made on 7 November 2023 and claims were invited up to 16 November 2023. The CoC was constituted on 6 December 2023 with Starwort Engineers Private Limited as the sole financial creditor holding the full voting share.

The tribunal notes that the process included appointment of registered valuers and a transaction auditor, issuance of Form G and extensions or exclusions of the CIRP period. An initial expression-of-interest exercise did not receive an EOI within the stipulated timeline, after which the process continued through later CoC deliberations.

Key financial features of the approved plan

The NCLT order states that the plan provides for CIRP costs to be paid at actuals and in priority to other debts. It records an admitted unsecured financial-creditor amount of about ₹11.98 crore and a proposed payment of ₹15 lakh, described in the order's plan table as about 1.06% of the admitted amount, payable within 30 days from the effective date.

The plan also provides for payment of specified operational-creditor amounts in priority to financial creditors as required by the Code. The order records no claim from secured financial creditors and no claims from employees or workmen. It also contemplates a 60-day implementation period from the effective date under an Implementation and Monitoring Committee.

NCLT restricts implementation to the successful resolution applicant

A notable part of the ruling concerns the proposed use of an implementing entity or subsidiary. The tribunal observed that the plan referred to implementation through an implementing entity or subsidiaries but did not define the term 'Implementing entity', and no such person had been nominated by the final hearing. It therefore directed that the plan be implemented by HMD Industry itself. The order further states that the resolution applicant must hold more than 50% of the corporate debtor's capital, directly or indirectly.

Why the tribunal approved the plan

The resolution professional certified compliance with the Code and CIRP Regulations through Form H, including Section 30(2), Regulation 38 requirements and the Section 29A eligibility of the successful resolution applicant. The tribunal noted that the CoC had considered the valuation reports and approved the plan unanimously. It reiterated that the CoC's assessment of feasibility and viability falls within its commercial domain and found no material basis to interfere with that commercial wisdom.

The bench concluded that the plan satisfied Section 30(2) and applicable CIRP Regulations and deserved approval under Section 31. As with all resolution-plan orders, the operative directions, reliefs and concessions in the full order should be read carefully by the resolution professional, successful applicant and affected stakeholders during implementation.

For insolvency professionals and advisers, the Krosslink order is useful for two reasons: it shows the tribunal requiring valuation to be completed before final approval even after an earlier unanimous CoC vote, and it demonstrates that ambiguous implementation structures can be narrowed by the adjudicating authority. The approved plan now moves into a 60-day implementation framework subject to the terms and directions in the NCLT order.

Key takeaway

Recently surfaced IBBI/NCLT order with practical insolvency-process lessons on valuation, CoC commercial wisdom and plan implementation.