NCLT Mumbai Approves Plan Despite Loans and Advances of ₹140 Crore in Nil-Valued Assets

The NCLT Mumbai Bench approved the resolution plan for Datalink Multi Trading Private Limited, notwithstanding loans and advances exceeding ₹50 crore and investments exceeding ₹90 crore that had been valued at nil. The Tribunal had sought repeated clarifications on the recoverability and status of these exposures, the identity of the entities involved and the apparent mismatch in the financial creditor's identity in the books. It also examined the treatment of the company's cash balance, the performance security and the plan's compliance with the IBC. Ultimately, relying on the RP's additional affidavits, the Form H compliance certificate and the CoC's unanimous approval, the Tribunal held that the statutory requirements were met and approved the plan.