Rajani Associates represented and advised Sethi Fund Management Private Limited, its affiliate companies, and Anil Anand and Anoop Anand in connection with their resolution plan for Altair Industrial Technologies Private Limited under Section 240A of the Insolvency and Bankruptcy Code, 2016. (IBC)
The Rajani Associates team consisted of Dikshat Mehra (Associate Partner) and Honey Chandnani (Associate).
The resolution plan was approved by the NCLT, Mumbai Bench on October 25, 2024.
Section 240A of the IBC is a provision specifically designed to address the unique challenges faced by micro, small, and medium enterprises (MSMEs) during the corporate insolvency resolution process (CIRP).
This section was introduced to provide certain exemptions to MSMEs from the restrictions imposed by Section 29A of the IBC, which generally disqualifies certain individuals from submitting resolution plans based on their past conduct or financial status.
The resolution plan, submitted by Sethi Funds Management Pvt. Ltd., its affiliate companies with Anil Anand and Anoop Anand was approved by 91.95% of the Committee of Creditors (CoC) during in its on April 18, 2021. Anil Anand and Anoop Anand are both former directors of Altair Industrial Technologies.
The approved resolution plan proposes a total resolution amount of ₹11.43 crore, which will be allocated as follows:
₹8.72 crore for payments to creditors, and
₹2.71 crore as capital infusion for rehabilitation of the Corporate Debtor.
The plan specifies timelines and payment structures for secured financial creditors, including Bank of India and SIDBI, while proportionately addressing the claims of operational creditors.
Altair Industrial Technologies Private Limited, CIRP by filing an application for voluntary insolvency under Section 10 of IBC.
The CoC comprised two financial creditors: Bank of India and Small Industries Development Bank of India (SIDBI).
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