NCLT Mumbai Approves Mantra Properties' Rs 201 Crore Resolution Plan For Nirmal Lifestyle

The National Company Law Tribunal's Mumbai Bench has approved a resolution plan involving an infusion of Rs 201 crore by Mantra Properties and Developers Pvt Ltd for Nirmal Lifestyle (Mulund) Pvt Ltd, which has been undergoing corporate insolvency resolution proceedings since July 11, 2023.

A Bench of Judicial Member Lakshmi Gurung and Technical Member Hariharan Neelakanta Iyer passed the order on April 29, 2026, allowing an application filed by Resolution Professional Amit Vijay Karia under Section 30(6) of the Insolvency and Bankruptcy Code seeking approval of the plan.

Reiterating that the commercial wisdom of the Committee of Creditors should be given primacy, the tribunal observed:

“In view of the law laid down by Hon'ble Supreme Court, the commercial wisdom of the COC is to be given paramount importance for approval / rejection of the resolution plan. As the Resolution Plan meets the requirements of the Code and the Regulations thereunder, the Resolution Plan submitted by M/s. Mantra Properties and Developers Private Limited, is hereby approved under Section 31(1) of the Code.”

The corporate insolvency resolution process against Nirmal Lifestyle (Mulund) was initiated on a plea by Beacon Trusteeship Ltd. During the process, the Resolution Professional treated Project Olympia as an asset of the corporate debtor on the basis that the company was entitled to around 99.98% of the net profits and losses of partnership firm Nirmal Developers, which is developing the project.

The tribunal noted that the Committee of Creditors comprised Beacon Trusteeship Limited with 60.54% voting share and Assets Care & Reconstruction Enterprise Ltd (ACRE) with 39.46%.

Initially, the Mantra resolution plan failed to secure the mandatory 66% approval after the first round of voting, with the two CoC members backing competing plans. In the second round of voting under the CIRP regulations, ACRE abstained.

However, after the tribunal granted additional time to reconsider the plan, ACRE voted in favour of the Mantra plan on August 5, 2025, resulting in 100% approval by the CoC.

The approved plan provides for an infusion of Rs 201 crore by Mantra Properties through equity or quasi-equity instruments. The plan also envisages completion of Project Olympia. Eligible homebuyers would have the option of receiving completed flats on payment of balance dues or seeking refunds, which are to be paid within 15 months from approval of the resolution plan.