NCLAT upholds fresh bid process for IVR Prime IT SEZ, dismisses Vasu Buildcon appeal
The NCLAT upheld an NCLT order letting lenders and homebuyers of IVR Prime IT SEZ invite fresh resolution plans, dismissing appeals by an earlier bidder, Vasu Buildcon, and a suspended director.
Key points
- The NCLAT dismissed appeals by Vasu Buildcon and a suspended director against fresh bidding in IVR Prime IT SEZ's insolvency, in a judgment of 27 October 2026.
- The tribunal held a 2022 approval of Vasu Buildcon's plan gave it no lasting right after its revised plan failed to win the 66% vote needed.
- A new plan by Sloan Solutions, valued at about Rs 623.30 crore and approved by creditors, awaits the NCLT's approval, the judgment notes.
The National Company Law Appellate Tribunal (NCLAT) in New Delhi has upheld an order allowing the creditors of IVR Prime IT SEZ Pvt. Ltd., including its homebuyers, to invite fresh resolution plans for the company. In a judgment dated 27 October 2026, the tribunal dismissed two appeals, one by Vasu Buildcon, whose earlier plan was not accepted, and one by a suspended director of the company.
What Happened
The company entered insolvency on 19 September 2019 on a petition by Nupur Finvest Private Limited. According to the judgment, the committee of creditors approved Vasu Buildcon's plan with 100% of the vote on 31 March 2022, but the NCLT had not approved it when, on 7 June 2024, it sent the plan back to the committee to reconsider the Noida Authority's claim as a secured creditor, after a Supreme Court ruling.
Vasu Buildcon's revised plan was put to vote and failed to get the required 66% majority. A settlement proposal from the suspended management also failed to get the required 90% vote. The committee then voted unanimously to invite fresh plans, and the NCLT allowed this on 25 July 2025.
The NCLAT held that the 2022 approval gave Vasu Buildcon no lasting right once the plan was sent back and the revised version failed. It said the committee's choice of fresh bidding over liquidation was a commercial decision within the law. It rejected the suspended director's claim of fraud and material irregularity over the transfer of 13 homebuyers' claims, noting those transfers were notified after the votes and could not change them.
The judgment records that fresh bids were invited on 15 August 2025, and a plan by Sloan Solutions Pvt. Ltd., valued at about Rs 623.30 crore, was approved by the committee with 100% of the vote on 23 March 2026. It is awaiting the NCLT's approval.
What It Means
For homebuyers and lenders of IVR Prime IT SEZ, the ruling clears the way for the NCLT to decide on the new plan, more than seven years after the insolvency began. The NCLAT's judgment may be appealed to the Supreme Court.
Source: NCLAT order
Sources & Citations
- NCLAT order — National Company Law Appellate Tribunal