Vikas WSP plan takes effect as committee assumes board powers

Vikas WSP Limited (Vikas WSP) entered implementation of Arcbolt Space and Foods Private Limited’s National Company Law Tribunal-approved resolution plan on September 9, 2026, ending its moratorium and transferring board powers to a three-member Monitoring Committee for a term that cannot extend beyond 90 days from the approval order.

When did Vikas WSP’s resolution plan become effective?

Vikas WSP’s resolution plan became effective on September 9, 2026, when the National Company Law Tribunal, Chandigarh Bench, approved it under Section 31 of the Insolvency and Bankruptcy Code, 2016. The plan was submitted by Arcbolt Space and Foods Private Limited, identified in the filing as the successful resolution applicant.

The approval followed the Committee of Creditors’ 100% voting support at its 11th meeting on August 25, 2022. This changed Vikas WSP’s status from an insolvency process awaiting tribunal approval to an approved plan under implementation, although the filing said implementation remained in progress as of September 30, 2026.

Vikas WSP filed Form INC-28 with the Registrar of Companies, NCT of Delhi & Haryana, on October 6, 2026, to notify the September 9 order. The company said its status had been updated to “Active”, while also stating that management remained under the Monitoring Committee during the implementation period.

Who controls Vikas WSP while the plan is implemented?

Vikas WSP is controlled by the Monitoring Committee during the implementation term, while its existing board remains suspended. The committee consists of one Bank of India representative for financial creditors, Karan Jakhar as Arcbolt’s representative, and Darshan Singh Anand as chairman and insolvency professional.

The filing states that every decision otherwise taken by Vikas WSP’s board must instead be taken by the Monitoring Committee during the term. It further says the board has no authority to conduct the company’s business after the September 9, 2026 approval order.

This arrangement differs from the earlier insolvency structure. Darshan Singh Anand was appointed Interim Resolution Professional when the process began on February 2, 2022, and was confirmed as Resolution Professional at the second Committee of Creditors meeting on March 17, 2022; he now chairs the Monitoring Committee.

Management and control are to vest with Arcbolt once the resolution plan is implemented under its terms. That handover had not occurred by September 30, 2026, because Vikas WSP said the plan remained in progress and the Monitoring Committee continued to exercise board powers.

How long can Vikas WSP’s Monitoring Committee remain in charge?

Vikas WSP’s Monitoring Committee is to operate until the closing date, defined as the completion of specified actions under the plan and, in any event, no later than 90 days after the September 9, 2026 approval order. The filing calls this implementation period the “Term”.

During the Term, the plan binds Vikas WSP, its employees, members, creditors and other stakeholders. The company said the plan provides for settlement of creditor claims, funds for working capital and capital expenditure, restructuring of existing share capital, and reconstitution of the board within the stipulated timelines.

The disclosure does not quantify the proposed fund infusion, creditor settlements, capital expenditure or share-capital restructuring. It therefore establishes the plan’s mechanisms and outer 90-day deadline, but not the monetary value or sequencing of each step.

The Section 14 moratorium ceased from September 9, 2026, the same date the plan became effective. That marks a change from the moratorium that had been in force since the February 2, 2022 insolvency admission, but it does not indicate that implementation had concluded by the September 30 reporting date.

What issues remain unresolved in Vikas WSP’s implementation?

Vikas WSP still has incomplete records and creditor-claim reconciliation matters to address during implementation. The Monitoring Committee chairman informed the auditor that company records had not been fully handed over, and that an application under Section 19(2) of the Insolvency and Bankruptcy Code had been submitted to the tribunal.

Management had also stated in an email dated February 15, 2022 that a ransomware attack made tally data, the fixed-assets register and other relevant records before April 1, 2021 unavailable. The auditor said the fixed-assets register had not been produced because it was not handed over by past management, restricting its ability to assess property, plant and equipment values and depreciation.

For the unaudited standalone results for the quarter and half-year ended September 30, 2026, the auditor issued a qualified conclusion. It cited the absence of a full assessment of tangible-asset impairment and a pending comprehensive review of the carrying amounts of assets and liabilities, including goods and services tax balances, receivables, advances and payables.

Financial and operational creditor claims are being reconciled with amounts in the books as at the February 2, 2022 insolvency commencement date. The auditor said no accounting adjustments had been made for potential excess, short or unreceived claims and that the financial effect, if any, could not currently be determined.

What does the auditor say Vikas WSP needs to restore operations?

The auditor said Vikas WSP had incurred continuous losses, had current liabilities exceeding current assets, and had defaults in borrowings as well as regulatory and statutory dues at September 30, 2026. These conditions created a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern.

The September 30, 2026 accounts were nevertheless prepared on a going-concern basis. The auditor said Vikas WSP’s ability to recommence and sustain operations depends on timely implementation of the plan, availability of proposed funds, restoration of manufacturing facilities, working-capital support and sufficient future cash flows.

The auditor also noted that information including minutes of Committee of Creditors meetings and outcomes of certain insolvency procedures was considered confidential and was unavailable beyond the Committee of Creditors and the tribunal. It said the absence of that information meant it could not comment on possible effects on financial presentation or disclosures.

Conclusion

Vikas WSP has moved beyond the moratorium that began on February 2, 2022 into a formal implementation stage under the September 9, 2026 tribunal order. The principal immediate change is governance: the Monitoring Committee, rather than the suspended board, directs the company while the plan addresses creditor claims, funding, capital expenditure, share capital and board reconstitution.

The next disclosed milestone is the closing date, which must occur no later than 90 days from the September 9, 2026 approval order. Investors will also be watching whether the proposed funding, working-capital support and manufacturing-facility restoration occur, alongside progress on incomplete records, asset assessment and reconciliation of creditor claims.