Tork Motors Pvt Ltd gets NCLT nod for ₹3.45 crore plan

Tork Motors Pvt Ltd received National Company Law Tribunal approval on November 6, 2026, for a ₹3.45 crore resolution plan after its Committee of Creditors approved the proposal with 82.59% of voting share. The approved plan also provides for full payment of the ₹53.03 lakh Employees' Provident Fund Organisation claim, including interest and damages.

Why did Tork Motors receive NCLT approval for its resolution plan?

Tork Motors received approval because the Mumbai Bench-II of the National Company Law Tribunal found that the resolution plan met the requirements of the Insolvency and Bankruptcy Code and the applicable corporate insolvency regulations. The plan was submitted by a consortium comprising Venkateshwara Buildtech Pvt Ltd and entrepreneur Sanjeev Kumar.

The tribunal approved the proposal under Section 31(1) of the Insolvency and Bankruptcy Code. It recorded that the plan had been backed by 82.59% of the Committee of Creditors' voting share at its August 21, 2026 meeting. The approval formally concludes the corporate insolvency resolution process subject to implementation of the sanctioned plan.

Tork Motors entered the corporate insolvency resolution process on October 31, 2025. The proceeding began after operational creditor Unaprime Investment Advisors Pvt Ltd filed a petition under Section 9 of the Insolvency and Bankruptcy Code. The NCLT's order now places the approved consortium in charge of carrying out the resolution proposal.

How were Tork Motors' EPFO dues resolved?

Tork Motors' approved plan provides for payment of the entire ₹53.03 lakh admitted Employees' Provident Fund Organisation, or EPFO, claim. This includes the amount attributable to interest and damages, after the tribunal sought clarification on the initial proposed treatment of the statutory dues.

The resolution applicant had initially earmarked ₹38.63 lakh for the EPFO claim. It had proposed excluding ₹14.39 lakh relating to interest and damages under Sections 7Q and 14B of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952. Following the NCLT's query, the consortium agreed to meet the full admitted amount.

The clarification is material because the plan's treatment of statutory employee-related claims was examined before approval. The tribunal noted compliance with Section 30(2) of the Insolvency and Bankruptcy Code and Regulations 37, 38, 38(1A) and 39(4) of the CIRP Regulations.

What led to Tork Motors' insolvency process?

Tork Motors entered insolvency proceedings after a period of financial and operational difficulty in the electric two-wheeler market. The Pune-based electric motorcycle company had previously sought a stake sale to raise capital as it faced funding constraints and reduced government support for electric vehicle sales.

The company had backing from Bharat Forge and other investors. Kalyani Powertrain Ltd, a Bharat Forge subsidiary, had increased its holding in Tork Motors through conversion of debentures and became a significant shareholder. Earlier disclosures stated that Kalyani Powertrain held a 64.29% stake in Tork Motors.

Bharat Forge later said it had written off its investment in Tork Motors amid the company's operational struggles. Reports at the time indicated that production had stopped and that the company had faced dealer and employee-related issues. The reduction and withdrawal of support under the FAME scheme were cited as factors affecting the company's profitability and operating environment.

What does the approved plan mean for creditors and the EV industry?

The NCLT approval establishes the financial settlement framework for Tork Motors' creditors and enables the successful resolution applicant to implement the plan. For the EPFO, the revised proposal ensures that its full admitted claim of ₹53.03 lakh, including interest and damages, is covered under the plan.

The order also reflects the central role of the Committee of Creditors in the insolvency process. Its 82.59% vote provided the creditor approval required before the proposal was placed before the tribunal. The NCLT found that the plan complied with the statutory provisions and CIRP regulations cited in its order.

For the electric two-wheeler sector, the case illustrates the funding and policy pressures that smaller manufacturers can face. Tork Motors had attempted to operate in the electric motorcycle segment, where competition and funding requirements differ from the larger electric scooter market. The approved plan does not by itself disclose future product, production, dealer, or employment plans.

Conclusion

The NCLT's approval gives Tork Motors a court-sanctioned resolution plan worth ₹3.45 crore and resolves the treatment of the full ₹53.03 lakh EPFO claim. The order follows creditor approval with an 82.59% voting share and brings the insolvency process to the implementation stage under the Insolvency and Bankruptcy Code.

The next point to watch is implementation by the Venkateshwara Buildtech-Sanjeev Kumar consortium. The available order confirms the plan's approval and the full EPFO payment commitment, but it does not specify a timetable for operational revival, manufacturing, customer deliveries, or any future business strategy for Tork Motors.