NCLT accepts Resolution Plan of V Hotels Ltd.: Meeting IBC Code & CIRP Regulations

Anish Niranjan Nanavaty Vs Asset Reconstruction Company Limited (NCLT Mumbai)

Application accepted as Resolution Plan met the requirements of Section 30(2) of the IBC Code and the Regulations 37, 38, 38(1A) and 39(4) of the CIRP Regulations

Conclusion: Resolution Plan met the requirements of Section 30(2) of the Code and the Regulations 37, 38, 38(1A) and 39(4) of the CIRP Regulations. The Resolution Plan was not in contravention of any of the provisions of Section 29A of the Code and was in accordance with law. It should be binding on the Corporate Debtor, its employees, members, creditors including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force is due, guarantors and other stakeholders involved in the Resolution Plan.

Held: Applicant submitted that Asset Reconstruction Company (India) Limited, the Financial Creditor initiated the Corporate Insolvency Resolution Process (‘CIRP’) against V Hotels Ltd. (‘Corporate Debtor’) under Section 7 of the Code. Tribunal initiated CIRP against the Corporate Debtor and appointed the Applicant herein as the Interim Resolution Professional (IRP). Thereafter, the admission order was set aside by the Hon’ble National Company Appellate Tribunal (NCLAT) thereby releasing the Corporate Debtor from the rigors of CIRP. However, the Hon’ble NCLAT’s order was set aside by Hon’ble Supreme Court on 01.08.2022 and the management and affairs of the Corporate Debtor again came to be vested with the Applicant.  Applicant filed an application for exclusion of time period from 31.05.2019 to 01.08.2022 from the CIRP period which was allowed on 07.09.2022.  Applicant on 03.10.2022 published the addendum to the public announcement dated 06.06.2019 and invited the updated claims from the Creditors of the Corporate Debtor on 01.08.2022. Applicant appointed registered valuers i.e. RBSA Valuation Advisors LLP and IVAS Partners, to ascertain the Fair Value and the Liquidation Value of the assets of the Corporate Debtor. Applicant confirmed that the revised Resolution Plans received from three PRAs were compliant with the requirements of Section 30, 31 of the Code. It was held that Resolution Plan submitted by MDL was approved by the members of the CoC unanimously by 100% voting and MDL was declared as the Successful Resolution Applicant (SRA). The Letter of Intent (LoI) came to be issued to MDL on 22.06.2023. the instant Resolution Plan meets the requirements of Section 30(2) of the Code and the Regulations 37, 38, 38(1A) and 39(4) of the CIRP Regulations. The Resolution Plan is not in contravention of any of the provisions of Section 29A of the Code and is in accordance with law. Resolution Plans were put to vote and the voting lines for approval of the Resolution Plans were kept open till 22.06.2023. It shall become effective from this date and shall form part of this order. It shall be binding on the Corporate Debtor, its employees, members, creditors including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force is due, guarantors and other stakeholders involved in the Resolution Plan.

FULL TEXT OF THE ORDER OF ITAT MUMBAI

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