The Mumbai bench of the National Company Law Tribunal (NCLT) on Wednesday rejected the sole resolution plan for the bankrupt Jyoti Structures. The plan had been submitted by a team led by Sharad Sanghi, MD & CEO of Netmagic Solutions. Sector experts believe the bid was thrown out because it reportedly envisaged a payment of only Rs 3,000 crore over 15 years, a haircut for the lenders of 60%. Although the engineering company reported losses of Rs 1,483 crore in 2016-17 on Rs857 crore in revenues, it is possible the liquidation value could be higher than Rs 3,000 crore, they said. While the financial creditors of the company claimed Rs 8,226 crore, the NCLT has admitted claims worth Rs 7,625 crore. State Bank of India is the largest lender to the company with an exposure of Rs 1,962 crore. The NCLT\u2019s detailed order, expected on Friday, is likely to contain the reasons for the rejection. Apart from Sanghi, Madhusudan Kela, earlier with Reliance Capital, and Manish Kejriwal, managing partner of Kedaara Capital, are the other partners of the team that bid for Jyoti Structures. Vandana Garg, the resolution professional (RP) for Jyoti Structures, said she was not aware of the grounds for the plan having been rejected. Garg said the lenders and the resolution applicant have the option to challenge the order. The Mumbai-based Jyoti Structures provides engineering, procurement and construction (EPC) services in the power transmission sector. This is the first instance where the NCLT has rejected a resolution plan presented for the biggest set of 12 stressed companies identified by the Reserve Bank of India (RBI) for insolvency proceedings. As per Insolvency and Bankruptcy Code (IBC) regulations, any resolution plan has to be passed by a 75% majority. Last month, the threshold was reduced to 66%. The 270-day period for the resolution process for Jyoti Structures came to an end on March 31, 2018. At a vote held on March 27, the lenders had voted in favour of the resolution plan with around 62% majority. Some of the lenders were unable to participate due to a technical glitch in the online voting system. However, soon afterwards, IDBI Bank, Indian Bank, Standard Chartered and Bank of India wrote to the RP, asking that their votes, in favour of the plan, be counted. The RP filed a petition in the NCLT on April 2 seeking an extension of the deadline as some creditors were unable to participate in an online vote. The resolution plan received 81% majority during a vote on April 6, and was submitted for the NCLT\u2019s approval. DBS Bank, one of the secured financial creditors with 0.73% voting share in the consortium, had opposed the resolution plan submitted to the NCLT. Its legal counsel had raised an objection to the request for an eight-day extension and had deemed the process improper. Among the top 12 stressed assets, Bhushan Steel, Electrosteel Steels, Amtek Auto and Monnet Ispat have been resolved under the IBC.