NCLT rejects Rs 419.50 crore resolution plan for SU Toll Road
The NCLT Mumbai bench rejected a Rs 419.50 crore resolution plan for SU Toll Road, holding that the bidder's refusal to fund pending highway repair work made the plan impossible to implement.
Key points
- The NCLT Mumbai bench on 3 November 2026 rejected the resolution plan for SU Toll Road Private Limited, admitted on SBI's petition.
- The plan was worth Rs 419.50 crore, including Rs 417 crore for financial creditors, and had 100% lender approval.
- The tribunal gave lenders 15 days to decide the next step; if they invite fresh bids, the process is extended by 120 days.
Photo: Abhijitsathe / Wikimedia Commons, CC BY-SA 3.0 (cropped). Representational image.
The National Company Law Tribunal's Mumbai bench on 3 November 2026 rejected a Rs 419.50 crore resolution plan for SU Toll Road Private Limited, which holds the concession for the Salem-Ulundurpet section of NH-68/NH-79 from the National Highways Authority of India (NHAI). The tribunal held that the plan could not be implemented after the winning bidder declined responsibility for pending major repair work on the road.
What Happened
The tribunal admitted the company into the corporate insolvency resolution process, a time-bound process to rescue or sell a company in default, on 18 August 2025 on a petition by State Bank of India. Of 26 expressions of interest, six bidders filed plans. After a challenge process with a reserve price of Rs 264 crore, a consortium's plan was approved by the committee of creditors with 100% of the vote on 9 June 2026, per the order.
The plan offered Rs 417 crore to financial creditors, Rs 50 lakh towards process costs, and Rs 4 lakh and Rs 1.96 crore to operational creditors. NHAI had filed a claim of about Rs 444.68 crore, of which Rs 65.07 crore was admitted.
The tribunal noted that the concession agreement, the company's only asset, requires major maintenance and repair work, which was pending, and lets NHAI terminate the agreement if it is not done. It found that the bidder's communication of 23 July 2026 declining this obligation made the plan impossible to implement. It also held that the committee of creditors was not diligent in examining the plan's feasibility on this point.
What It Means
The company is not being liquidated for now. The tribunal asked the committee of creditors to decide its next step within 15 days, noting that another bidder had shown interest. If the lenders invite fresh bids, the process will be extended by 120 days from that decision. The lenders and the resolution professional may pursue any rights they have against the bidder arising from the rejection. The order may be appealed to the National Company Law Appellate Tribunal.
Source: NCLT order
Sources & Citations
- NCLT order — National Company Law Tribunal