NCLT Kolkata Approves Vedanta's Rs 545 Crore Plan to Revive Incab Industries

The National Company Law Tribunal (NCLT) at Kolkata has recently approved Vedanta Limited's Rs 545 crore resolution plan for the revival of cable manufacturing company Incab Industries Limited. The tribunal held that once a plan complies with the requirements of the Insolvency and Bankruptcy Code, the commercial wisdom of the Committee of Creditors must prevail.

“Therefore, subject to the compliance of our observations as above, we hereby approve the Resolution Plan Amount to the tune of Rs 5,45,00,00,000 submitted by M/s Vedanta Limited Successful Resolution Applicant.” , the tribunal said.

A bench of Judicial Member Labh Singh and Technical Member Rekha Kantilal Shah said the plan met all statutory requirements. 

The tribunal also noted that Vedanta had undertaken through affidavits to pay all provident fund and gratuity dues of workmen and employees over and above the plan value and that the plan offered a realisable value higher than both fair value and liquidation value.

Incab's insolvency proceedings began in August 2019 on a petition filed by operational creditor Jayanta Banerjee. The CoC voted for liquidation in December 2019, prompting a liquidation order on February 7, 2020. The NCLAT set aside the liquidation on June 4, 2021 and directed the revival of the CIRP.

Fresh bids for resolution were issued in August and September 2021, following which Vedanta submitted its resolution plan. The plan was approved with 99.37 percent votes on 23 June 2022. A Letter of Intent was issued on 25 June 2022 and accepted on 30 June 2022 along with a performance guarantee of Rs 54.5 crores.

The CoC later approved supplementary affidavits and an updated compliance certificate on November 2025 with 91.5 percent votes after Vedanta clarified that it would itself implement the plan in place of the originally named implementing entity which had been dissolved.

Stakeholders opposing the plan had questioned valuation, capital reduction, the change of plan implementer and the feasibility of the proposal. The resolution professional submitted that the plan complied with Section 30(2) and the CIRP Regulations, that no avoidance transactions were found, and that the change of implementing entity was permissible under a standard clause allowing implementation by any group company.

Vedanta confirmed through affidavits that it would bear all provident fund and gratuity dues of workmen and employees over and above the plan value.

Rejecting the objections, the tribunal reiterated that it cannot interfere with commercial decisions of the CoC once statutory compliance is demonstrated.

The order also noted Vedanta's statement that “the aforesaid payment on account of Provident Fund and Gratuity dues would be over and above the Total Financial Package payable under the Resolution Plan.” The resolution professional has been directed to hand over all records and documents to Vedanta for implementation.