NCLAT Approves Resolution Plan for KSS Limited in CIRP Amid Appeals Settlement
The resolution plan submitted by Micro Capitals Private Limited for KSS Limited, a company undergoing Corporate Insolvency Resolution Process (CIRP), has been approved by the National Company Law Appellate Tribunal (NCLAT). The order was passed by the NCLAT on June 30, 2026.The approval follows the settlement of two appeals before the Tribunal, concerning the fate of the resolution plan that had previously been rejected by the Adjudicating Authority. This plan was submitted by Micro Capitals Private Limited (the Successful Resolution Applicant) and sought to address the company's insolvency status under the provisions of the Insolvency and Bankruptcy Code (IBC).
The NCLAT ruled in favor of the resolution, allowing both appeals and approving the plan. The Tribunal noted that the concerns regarding feasibility and viability, as well as the issue of the Successful Resolution Applicant (SRA) being a Financial Creditor in the Committee of Creditors (CoC), were addressed. The Tribunal found no infirmity with regard to the plan's compliance with relevant regulations.
The resolution process commenced after KSS Limited was admitted into CIRP by the National Company Law Tribunal, Mumbai Bench, on January 24, 2023. At that time, claims submitted by Micro Capitals Private Limited and Axis Bank Limited amounted to approximately Rs. 95.59 crores. The Committee of Creditors (CoC), which was led by Micro Capitals Private Limited holding a 77.97% voting share, had previously approved the plan in October 2023.
The resolution plan, submitted by Micro Capitals Private Limited, proposed a total payment of approximately Rs. 3.01 crores against the admitted claims.
Key financial details related to the resolution process include:
| Aspect | Detail |
|---|---|
| Total Admitted Claims (Approx.) | Rs. 95.59 crores |
| Proposed Plan Value | Rs. 3.01 crores |
| Principal Financial Creditor's Share (SRA) | 77.97% |
Following the approval of the Resolution Plan by the NCLAT, the implementation of the plan, which includes matters related to the reconstitution of the Board of Directors, change in management and control, capital structure, and other consequential actions, will proceed according to the approved terms. The Adjudicating Authority has been directed to pass the consequential orders stemming from this approval within a period of one month from the date of the NCLAT order.
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