Vikas WSP board suspended as three-member committee takes control

Vikas WSP Limited’s board remains suspended after the National Company Law Tribunal approved Arcbolt Space and Foods Private Limited’s resolution plan on September 9, 2026, transferring all board powers to a three-member Monitoring Committee for an implementation term that cannot exceed 90 days from the order.

Who controls Vikas WSP during the resolution-plan term?

Vikas WSP is controlled by a three-member Monitoring Committee during the plan term, rather than by its existing board. The committee comprises Bank of India as the financial-creditor representative, Karan Jakhar as the resolution applicant’s representative, and Darshan Singh Anand, the erstwhile resolution professional, as chairman.

The filing states that all decisions otherwise taken by Vikas WSP’s board must be taken by the Monitoring Committee during the term. The existing board has no authority to conduct the company’s business, and its powers and duties vested with the committee after the September 9, 2026 approval order.

The governance arrangement follows the Corporate Insolvency Resolution Process, or CIRP, which began on February 2, 2022. On that date, the National Company Law Tribunal, or NCLT, Chandigarh Bench admitted a financial creditor’s petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, and appointed Anand as interim resolution professional.

Anand was confirmed as resolution professional at the second meeting of the Committee of Creditors, or CoC, on March 17, 2022. The current committee combines a creditor representative, a representative of the successful resolution applicant and the former resolution professional while the approved plan is implemented.

What did the NCLT approve for Vikas WSP?

The NCLT approved the resolution plan submitted by Arcbolt Space and Foods Private Limited on September 9, 2026, under Section 31 of the Insolvency and Bankruptcy Code. Arcbolt became the successful resolution applicant, and the plan became effective pursuant to the NCLT order in IA(IBC)/1538/(CH)/2022 in CP(IB) No. 315/Chd/Hry/2019.

The approved plan provides for settlement of creditor claims, funding towards working capital and capital expenditure, restructuring of existing share capital and reconstitution of Vikas WSP’s board within stipulated timelines. The filing does not disclose the value of creditor settlements, the proposed fund infusion, the revised share capital or a date for appointing a new board.

The plan binds Vikas WSP, its employees, members, creditors and other stakeholders until the closing date. That date is defined as the point when specified plan actions are consummated and, in any event, cannot be later than 90 days from the September 9, 2026 approval order.

Management and control are to vest with Arcbolt after implementation of the plan, subject to its terms and conditions. As of the unaudited standalone financial results for the quarter and half year ended September 30, 2026, implementation of the approved plan was still in progress.

Why has Vikas WSP’s board not resumed its duties?

Vikas WSP’s board has not resumed its duties because the approved plan keeps the existing board suspended during the implementation term. The filing says all powers and duties that would otherwise belong to directors vest with the Monitoring Committee after the September 9, 2026 order.

The filing presents the suspension as an implementation-period arrangement rather than disclosing a permanent board structure. The plan provides for reconstitution of the Board of Directors within its own timelines, but gives no date, number of directors or identities of future appointees.

Anand retained a transition role before and after the committee’s constitution. The approved-plan disclosure says the chairman of the Monitoring Committee, identified as the erstwhile resolution professional, was entrusted with supervising implementation until the committee was constituted.

The committee’s control covers decisions needed to implement creditor settlements, working-capital funding, capital expenditure, share-capital restructuring and future board reconstitution. These measures remained unfinished as of the September 30, 2026 financial-results date.

What records and reporting issues does Vikas WSP face?

Vikas WSP faces incomplete record handover and unresolved accounting verification during implementation. The committee chairman informed the auditor that company records had not been completely handed over, and an application under Section 19(2) of the Insolvency and Bankruptcy Code has been submitted to the NCLT.

Management had also informed the company by email on February 15, 2022 that a ransomware attack made Tally data, the fixed-asset register and other relevant records before April 1, 2021 unavailable. The auditor separately reported that the fixed-asset register was not produced because past management had not handed it over.

The independent auditor issued a qualified conclusion on Vikas WSP’s unaudited standalone results for the quarter and half year ended September 30, 2026. It said the company had not assessed potential impairment of tangible assets and had not completed a comprehensive review of carrying amounts for assets and liabilities, including balances with Goods and Services Tax and other statutory authorities.

Claims filed by financial and operational creditors remain under reconciliation with book balances as at the February 2, 2022 insolvency commencement date. The auditor said no provision or accounting adjustment had been made for excess, short or unreceived claims while reconciliation remains ongoing, leaving any resulting effect on reported results unascertainable.

The auditor also identified continuous losses, current liabilities exceeding current assets, borrowings defaults and defaults in regulatory and statutory payments as conditions creating material uncertainty over going concern. It said Vikas WSP’s ability to recommence and sustain operations depends on timely plan implementation, proposed funds, restoration of manufacturing facilities, working-capital support and future cash flows.

How does the approved plan change Vikas WSP’s next steps?

The approved plan changes Vikas WSP’s immediate task from resolving the CIRP to completing specified implementation actions before the 90-day outer deadline. Those actions include creditor-claim settlement, working-capital and capital-expenditure funding, restructuring of existing share capital and reconstitution of the board.

The filing does not state whether proposed funds have been received or whether manufacturing facilities have been restored as of September 30, 2026. It instead says the plan’s implementation is in progress and identifies fund availability, facility restoration and sufficient future cash flows as factors affecting operations.

The financial reporting process will also remain under the Monitoring Committee or other persons authorised under the plan while the board stays suspended. The auditor’s September 30, 2026 review was limited to inquiries and analytical procedures under Standard on Review Engagement 2410, rather than a full audit.

The committee must therefore oversee both operational implementation and issues affecting financial reporting, including unavailable pre-April 2021 records, creditor-claim reconciliation and verification of asset and liability balances. The filing does not provide a quantified financial effect for these unresolved matters.

Conclusion

Vikas WSP has entered a post-approval implementation phase in which the September 9, 2026 NCLT order made Arcbolt’s plan effective but did not immediately transfer management to Arcbolt. Bank of India, Karan Jakhar and Darshan Singh Anand now exercise board-level authority through the three-member Monitoring Committee while the existing board remains suspended.

The next disclosed milestone is the closing date, which cannot be later than 90 days after the September 9, 2026 order. Progress to watch includes completion of plan actions, creditor-claim reconciliation, record handover, proposed working-capital and capital-expenditure funding, restoration of manufacturing facilities, share-capital restructuring and board reconstitution.