NCLT Mumbai Approves ₹16.10 Crore Klassic Wheels' Resolution Plan for Indian Refrigerator Company
The National Company Law Tribunal (NCLT) at Mumbai has approved a Rs. 16.10 crore resolution plan submitted by Klassic Wheels Ltd for the revival of debt-laden Indian Refrigerator Company Ltd, bringing the resolution process to an end.A coram of Judicial Member Nilesh Sharma and Technical Member Charanjeet Singh Gulati, in an order dated December 19, 2025, held that the plan complied with...
The National Company Law Tribunal (NCLT) at Mumbai has approved a Rs. 16.10 crore resolution plan submitted by Klassic Wheels Ltd for the revival of debt-laden Indian Refrigerator Company Ltd, bringing the resolution process to an end.
A coram of Judicial Member Nilesh Sharma and Technical Member Charanjeet Singh Gulati, in an order dated December 19, 2025, held that the plan complied with all mandatory requirements under the Insolvency and Bankruptcy Code and therefore deserved approval.
Reiterating the law, the tribunal said that once a resolution plan satisfies the conditions under Section 30(2) of the Code, the adjudicating authority cannot question the commercial wisdom of the Committee of Creditors.
Indian Refrigerator Company was admitted into insolvency on August 14, 2024, on a plea filed by the operational creditor Silveroak Home Appliances Pvt Ltd.
A public announcement inviting claims was issued in August 2024. The Committee of Creditors was constituted on September 5, 2024, with KBS Realtors Pvt Ltd as the sole unsecured financial creditor holding 100 percent voting share.
After Form G was issued in October 2024 calling for expression of interest, two prospective resolution applicants initially expressed interest, but only Klassic Wheels Limited eventually submitted a resolution plan.
The plan was approved by the lender's committee with a 100 percent vote in March 2025, and a letter of intent was issued. Klassic Wheels also furnished a performance bank guarantee of Rs. 1.61 crore.
During the approval proceedings, objections were raised by certain stakeholders on issues such as asset valuation, the treatment of operational creditors, and the absence of a separate valuation of accumulated and carried-forward losses shown in the company's books. It was argued that these losses could confer future tax benefits on the successful resolution applicant and should therefore have been factored into valuation.
The tribunal rejected these objections, holding that valuation is a matter squarely within the domain of the Committee of Creditors and registered valuers.
Quoting the apex court in K Sashidhar v. Indian Overseas Bank & Others (2019), the tribunal said, “On receipt of such a proposal, the Adjudicating Authority is required to satisfy itself that the Resolution Plan, as approved by CoC, meets the requirements specified in Section 30(2),”
It also clarified that accumulated losses are deferred tax assets and do not require independent valuation at the plan approval stage.
The NCLT accordingly approved the resolution plan and directed Klassic Wheels to obtain all necessary statutory approvals in accordance with law.
Case Title: Silveroak Home Appliances Pvt Ltd vs Indian Refrigerator Company Ltd
Citation: 2026 LLBiz NCLT (MUM) 8
Case Number: IA (PLAN)/37/2025 in CP (IB)/252(MB)2024
For Petitioner: Advocates Amir Arsiwala, Shubham Shinde