Vikas WSP Resolution Plan Approval Delayed as NCLT Hearing Set for May 4

NCLT Proceedings and Key Claims

Vikas WSP Ltd has informed exchanges that its Corporate Insolvency Resolution Process (CIRP) is facing procedural delays. The National Company Law Tribunal (NCLT), Chandigarh Bench, was scheduled to hear the approval of the company's Resolution Plan on April 27, 2026, but the hearing could not proceed.

In addition to the deferred plan approval, the NCLT has reserved its orders on applications filed by the Employees' Provident Fund Organisation (EPFO) and the Income Tax Department concerning their revised claims. The matter is now slated for further hearing on May 4, 2026.

Significance of the Delay

These developments are crucial for Vikas WSP Ltd, as the NCLT's decisions will shape the company's future under insolvency resolution. Delays in approving the resolution plan and uncertainty over pending claims can extend the Corporate Insolvency Resolution Process. This impacts potential investors and existing stakeholders who are awaiting clarity on the company's path forward.

Background: Vikas WSP's Insolvency Process

Vikas WSP Limited, which manufactures starch and starch derivatives, was admitted into CIRP by the NCLT, Chandigarh Bench. This followed a petition from the State Bank of India due to defaults in loan repayments. The CIRP commenced in 2022, with regulatory bodies and the NCLT overseeing efforts to resolve the company's financial distress.

Immediate Impact and Risks

The immediate approval of Vikas WSP's Resolution Plan is now on hold. The company's operational and financial future depends significantly on the NCLT's rulings regarding the pending applications from EPFO and Income Tax, as well as the eventual resolution plan.

Further delays in NCLT proceedings could prolong the uncertainty. The outcome of the reserved orders on the revised claims might also introduce new conditions or challenges to the resolution plan, affecting its viability and implementation.

Industry Context

Navigating complex NCLT processes is common for companies undergoing insolvency. While rare to find direct listed peers currently in a similar stage, entities like KSK Energy Ventures Ltd have previously managed their own intricate insolvency proceedings, highlighting the procedural hurdles involved.

What to Watch Next

Investors and stakeholders will be closely monitoring the NCLT's decisions on the reserved orders for the EPFO and Income Tax claims. The upcoming hearing on May 4, 2026, will be key to tracking the progress of the Resolution Plan's approval and any updates on the overall CIRP timeline for Vikas WSP.