Ambition Mica Faces Resolution Plan Collapse; NCLT to Decide Fate

Ambition Mica Limited is confronting a major setback as the approved Resolution Plan has been breached by the Successful Resolution Applicant (SRA), Mr. Devenkumar Rameshbhai Patel. The Resolution Professional (RP) has reported the SRA's failure to adhere to the payment timeline mandated by the NCLT.

What just happened

The SRA defaulted on payments required by the resolution plan. The Resolution Professional has filed an application with the NCLT Ahmedabad, seeking to cancel the existing plan and restart the Corporate Insolvency Resolution Process (CIRP). This move places the company at risk of liquidation.

Why this matters

This development significantly jeopardizes the recovery process for Ambition Mica. Shareholders face increased uncertainty, with a potential liquidation scenario posing the most severe outcome. The NCLT's decision on whether to re-initiate CIRP or order liquidation will be critical.

The backstory

The approved Resolution Plan was valued at ₹6 crore, intended to address admitted claims totaling ₹44.01 crore. The SRA failed to make a crucial payment to Axis Bank, a Secured Financial Creditor, by the stipulated deadline. Despite the SRA citing overseas remittance issues, the Monitoring Committee deemed the reasons insufficient.

What changes now

The Resolution Professional is pushing for the cancellation of the current plan, the re-initiation of CIRP, issuance of a fresh Form G for new bids, and an extension of the CIRP period. The NCLT's ruling on these requests will determine the path forward.

Risks to watch

The primary risk is the NCLT ordering the liquidation of Ambition Mica, which would likely result in significant losses for equity holders. The RP is also seeking legal action against the SRA, including debarment from future resolution processes.

Peer comparison

Insolvency and bankruptcy proceedings often involve complex scenarios where resolution plans can falter. Companies undergoing CIRP face varying outcomes, from successful revival to liquidation, depending on creditor agreements and NCLT decisions. The total admitted claims of ₹44.01 crore significantly outweigh the resolution plan value of ₹6 crore, indicating a challenging recovery landscape.

Context metrics (time-bound)

• Total Admitted Claim Amount: ₹44.01 crore
• Approved Resolution Plan Value: ₹6 crore
• Payment to Axis Bank due: 28.01.2026
• CIRP Cost Payment (as of 29-Nov-25): ₹0.50 crore
• Liquidation Value: ₹5.66 crore
• Fair Value: ₹7.99 crore

What to track next

Investors should closely monitor the NCLT Ahmedabad proceedings. The court's decision on whether to cancel the plan and restart the CIRP or proceed with liquidation will be the key event to track.