Following the NCLAT proceedings under IBC 2016, the Principal Bench New Delhi ordered Statcon Electronics to proceed with the resolution proposal to acquire Delhi Control Devices.
Electronics components manufacturer Statcon Electronics India Pvt Ltd has acquired troubled electronics manufacturer Delhi Control Devices (DCD) Pvt Ltd for ₹24 crores through a resolution plan passed by the National Company Law Appellate Tribunal (NCLAT) court, Principal Bench New Delhi under section 31 of Insolvency and Bankruptcy Code (IBC) 2016.
Following the NCLAT proceedings under IBC 2016, the bench ordered Statcon Electronics, as per the resolution proposal submitted by the latter, to continue with the existing business of DCD and would complete all orders in hand whose agreement had been executed or Memorandum of Understanding (MoU) was pending.
Following a query raised by the adjudicating authority in September 2022, the company raised the resolution plan size by ₹60 lakhs from the initial ₹24 crores.
Commenting on the acquisition, Statcon Electronics told EFY that the company had fulfilled the proposal requirements and had secured the funds through banks, accruals and personal means.
Incorporated in 1984, Delhi Control Devices’ average liquidation value as per the NCLAT proceedings amounted to ₹25,36,77,118. The company received various goods from its supplier and solder manufacturer National Products who provided various electrical apparatus and equipment and in the course of which the amount became due and payable.
National Products initiated the Corporate Insolvency Resolution Process (CIRP) against Corporate Debtors (CD), under the IBC 2016 for the default in payment of an operational debt of ₹22 lakh. The two companies had earlier reached a settlement, wherein the principal amount would be paid in two tranches of instalments, the second one left unpaid by DCD.
The former directors, Ashish Gupta, Rekha Gupta and Dharampal Gupta, were disqualified by ROC u/s 164(2)’ due to the non-filing of financial statements or annual returns for three consecutive years.
Noida-based DCD’s line of business includes manufacturing switchgear and switchboard apparatus, such as switches, fuses, voltage limiters, surge suppressors, and junction boxes.
