# M/s Manjeet Cotton Pvt. Ltd. vs. Phoenix ARC Pvt. Ltd.

> NCLAT judgment dated 27 Apr 2026. Citation: TCN-2026-NCLAT-00145. The present Appeal was preferred by M/s Manjeet Cotton Pvt. Ltd. (Successful Resolution…

- **Court:** NCLAT
- **Order date:** 27 Apr 2026
- **Citation:** TCN-2026-NCLAT-00145
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ms-manjeet-cotton-pvt-ltd-vs-phoenix-arc-pvt-ltd-88ec40ca

## Summary

### Background

The present Appeal was preferred by M/s Manjeet Cotton Pvt. Ltd. (Successful Resolution Applicant) against an order dated 03.09.2025 passed by the National Company Law Tribunal, Mumbai Bench. The NCLT order allowed an application filed by Phoenix ARC Pvt. Ltd. (Financial Creditor) and directed the distribution of a surplus amount of Rs. 1 crore (later mentioned as Rs. 1,42,72,094.93/-) generated during the Corporate Insolvency Resolution Process (CIRP) of Deegee Cotsyn Pvt. Ltd. among the financial creditors under Section 53 of the Insolvency and Bankruptcy Code, 2016. The Appellant, M/s Manjeet Cotton Pvt. Ltd., argued that as the Successful Resolution Applicant, this surplus, generated during the CIRP period, should vest in them as an accretion to the corporate

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## Facts

Deegee Cotsyn Pvt. Ltd., the Corporate Debtor, had availed financial facilities from a consortium of banks led by UCO Bank, with an outstanding amount of Rs. 28,05,66,577/- as of 31.03.2018.

The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 31.12.2014 due to persistent defaults in repayment.

The debt and underlying security interests were assigned by UCO Bank to Phoenix ARC Pvt. Ltd., acting as trustee of Phoenix Trust FY 16-4, via an Assignment Agreement on 29.06.2015.

Phoenix ARC Pvt. Ltd. filed an application under Section 7 of the IBC, leading to the initiation of Corporate Insolvency Resolution Process (CIRP) against Deegee Cotsyn Pvt. Ltd. on 26.02.2019.

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## Issues and analysis

### Issue 1: Whether the surplus cash flow generated during the Corporate Insolvency Resolution Process (CIRP), …

**Ratio:** A Resolution Plan, once approved, is binding on all stakeholders regarding its explicitly

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**Reasoning:** The NCLAT found that the Resolution Plan was completely silent on the treatment,

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**Interpretation:** The NCLAT interpreted the clauses of the Resolution Plan strictly, holding that

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**Application:** Given that the Resolution Plan did not explicitly provide for the vesting of

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## Parties

- **Judges:** Ashok Bh…; Indevar P…
- **Appellants:** M/s Manjeet…
- **Respondents:** Deegee Cotsyn…; Phoenix ARC Pvt.…
- **Other parties:** Insolvency and…; Corporate…; +8 more

## Timeline

- **2014-12-31 — Account Classified as…**: The account of Deegee Cotsyn Pvt. Ltd. (Corporate Debtor) was classified as…
- **2015-06-29 — Debt Assi…**: The debt, along with underlying security interests, was assigned by UCO Bank in favour of…

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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/ms-manjeet-cotton-pvt-ltd-vs-phoenix-arc-pvt-ltd-88ec40ca