NCLT Mumbai Approves Supreme Capinfra's Rs. 96 Crore Plan To Revive C & M Farming

The National Company Law Tribunal (NCLT) at Mumbai has approved a Rs 96.81 crore resolution plan for the revival of C and M Farming Ltd, a poultry business. The tribunal held that once a resolution plan meets the requirements of the Insolvency and Bankruptcy Code, it cannot interfere with the commercial decisions of the Committee of Creditors.

A coram comprising Judicial Member Mohan Prasad Tiwari and Technical Member Charanjeet Singh Gulati passed the order on January 9. The bench found the plan to be fully compliant with Section 30(2) of the Code and the applicable regulations.

It reiterated that the commercial wisdom of the Committee of Creditors must be given primacy.

“In view of the law laid down by Hon'ble Supreme Court, the commercial wisdom of the COC is to be given paramount importance for approval/ rejection of the resolution plan. As the Resolution Plan meets the requirements of the Code and the IBBI (CIRP) Regulations, 2016, the same needs to be approved" the tribunal said.

C and M Farming, incorporated in 1980, is engaged in the poultry business. It was admitted into the corporate insolvency resolution process on March 21, 2024, on a petition filed by its sole financial creditor, Omkara Assets Reconstruction Pvt Ltd. A public announcement inviting claims was issued on March 22, 2024. The Committee of Creditors was constituted on April 13, 2024, with Omkara ARC holding 100 percent of the voting share.

After evaluation of resolution plans and completion of the challenge process, the Committee of Creditors approved the plan submitted by Supreme Capinfra Pvt Ltd with a unanimous vote. A letter of intent was issued in April 2025. It was accepted along with the submission of a performance bank guarantee.

Several stakeholders objected to the plan. They raised concerns over valuation, distribution, alleged undervaluation of assets, low payouts, and extinguishment of existing share capital. The tribunal rejected these objections. It held that once a plan is compliant with the law, the adjudicating authority cannot sit in appeal over the commercial wisdom of creditors.

Approving the plan, the tribunal directed the resolution professional to hand over all records, assets, and management of the corporate debtor to the successful resolution applicant for effective implementation of the revival plan.