NCLT approves Paramount Syntex plan for BBF Industries; lenders to get Rs 21 crore
The NCLT Chandigarh approved Paramount Syntex's Rs 23.10 crore resolution plan for BBF Industries. Lenders with admitted claims of Rs 805.29 crore will get Rs 21 crore over five months.
Key points
- The NCLT Chandigarh approved Paramount Syntex Limited's resolution plan for BBF Industries Limited in an order delivered on 28 October 2026.
- The plan is worth Rs 23.10 crore; financial creditors with admitted claims of Rs 805.29 crore get Rs 21 crore within five months.
- Workers' ESIC, EPFO, gratuity and labour welfare dues of Rs 31,71,279 are to be paid in full, and lenders keep their rights against guarantors.
The National Company Law Tribunal (NCLT), Chandigarh Bench, has approved a resolution plan by Paramount Syntex Limited to take over BBF Industries Limited, a company in insolvency since 20 November 2023. In its order delivered on 28 October 2026, the tribunal recorded the final plan value at Rs 23,10,14,481 (about Rs 23.10 crore). The company's lenders, whose admitted claims total Rs 8,05,29,45,994 (about Rs 805.29 crore), will receive Rs 21 crore.
What Happened
The insolvency case was filed by Jammu and Kashmir Bank. According to the order, the lenders' committee had in October 2025 rejected an earlier plan and resolved to move towards liquidation. Paramount Syntex then improved its offer to cover both the Ludhiana and Samba units as a going concern, raising the payment from about Rs 10 crore to about Rs 23.07 crore and cutting the payment period from two years to five months.
The committee approved the plan on 24 April 2026 with 79.49% of the vote; State Bank of India, with a 20.51% share, did not vote in favour. Punjab National Bank holds the largest share, 45.37%. The plan pays lenders Rs 21 crore in instalments over five months, and pays workers' ESIC, EPFO, gratuity and labour welfare dues of Rs 31,71,279 in full. Trade creditors other than government get about 1% of their admitted claims. The average liquidation value was Rs 18,81,72,800.
The tribunal directed the buyer to top up its performance guarantee of Rs 2,30,15,500 within seven days to at least 10% of the final plan value. Lenders keep their rights against the company's personal guarantors, and any recovery from a pending application under Section 66 of the Insolvency and Bankruptcy Code, involving about Rs 84.74 crore, goes to the lenders.
What It Means
The company avoids liquidation and will continue as a going concern under new owners. For the banks, the plan recovers a small part of their admitted claims. Claims not covered by the plan stand extinguished, the tribunal said. The order may be appealed to the NCLAT.
Source: NCLT order
Sources & Citations
- NCLT order — National Company Law Tribunal