Comprehensive Restructuring and Amalgamation Approved via PPIRP Route by NCLT Mumbai

The landscape of corporate restructuring for Micro, Small, and Medium Enterprises (MSMEs) has witnessed a significant judicial milestone. The National Company Law Tribunal (NCLT), Mumbai Bench, recently delivered a pivotal order validating a Pre-Packaged Insolvency Resolution Process (PPIRP) plan. This landmark adjudication in the matter of Kedar Parshuram Mulye Vs Adhikari Brothers Digital Network Limited sets a robust precedent for distressed MSMEs seeking revival through integrated amalgamation and capital reorganization mechanisms under the statutory umbrella of the Insolvency and Bankruptcy Code, 2016.

The ruling underscores the efficacy of the PPIRP framework, specifically designed to offer a faster, more collaborative resolution avenue for MSMEs compared to the traditional Corporate Insolvency Resolution Process (CIRP). By sanctioning a resolution plan that intricately weaves together debt settlement, equity restructuring, and corporate amalgamation, the Tribunal has reinforced the overriding powers of the insolvency framework over conventional corporate restructuring procedures.

Genesis of the Corporate Distress and PPIRP Initiation

The corporate debtor, SAB Events & Governance Now Media Limited, an MSME engaged in digital media and MICE (Meetings, Incentives, Conferences, and Exhibitions) services, faced severe financial headwinds. The enterprise's revenue streams were drastically crippled by the global COVID-19 pandemic, which brought its event management operations to a standstill and severely dented advertising revenues. Compounded by a liquidity crisis stemming from delayed receivables from institutional clients and unyielding fixed overheads, the entity's financial architecture began to crumble. By 31.03.2025, the company's current liabilities had eclipsed its current assets by a staggering multiple of 4.70, casting grave doubts on its going-concern viability.

Recognizing the existential threat, the company's Board of Directors convened on 14.08.2025, resolving to invoke the pre-packaged insolvency provisions. Subsequently, the NCLT Mumbai admitted the application under Section 54C of the Insolvency and Bankruptcy Code, 2016 on 04.11.2025, appointing a Resolution Professional to steer the statutory process.

Structural Blueprint of the Approved Resolution Plan

The cornerstone of the revival strategy is a binding resolution plan formulated by a consortium comprising Sri Adhikari Brothers Assets Holding Private Limited and Sri Adhikari Brothers Digital Network Private Limited. Submitted under Section 54K of the Insolvency and Bankruptcy Code, 2016, the blueprint leverages the specific exemptions available to MSMEs, allowing existing promoters or related entities to participate in the resolution process, provided they clear the eligibility hurdles set forth in Section 29A.