NCLT Ahmedabad Makes Neesa Leisure Resolution Plan Effective, Ends IBC Moratorium

The Ahmedabad bench of the National Company Law Tribunal (NCLT) has passed a consequential order approving the resolution plan for hospitality company Neesa Leisure Limited, which owns and operates hotels and resorts under the Cambay brand

The tribunal ruled that the plan submitted by Express Resorts and Hotels Limited, already approved by the National Company Law Appellate Tribunal (NCLAT), would now take effect.

A bench of Judicial Member Chitra Hankare and Technical Member Dr. Velamur G. Venkata Chalapathy observed, "The Resolution Plan so approved shall be binding on the Corporate Debtor and its employees, members, creditors, guarantors and other stakeholders involved in the Resolution Plan."

"The management of the Corporate Debtor shall be handed over to the Board of Directors as may be nominated by the SRA for the proper running of the operations/business of the Corporate Debtor.", it added.

The NCLAT approved the resolution plan on May 25, 2026, after setting aside the tribunal's March 2024 order rejecting it. Acting on those directions, the tribunal has now made the plan effective. The moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC) also stands lifted.

Neesa Leisure Limited entered the Corporate Insolvency Resolution Process (CIRP) on April 26, 2019. The Committee of Creditors approved the resolution plan on October 24, 2020, with a 67.85% voting share.

The bench noted that several interlocutory applications remained pending, including disputes over a service provider contract and termination orders issued during the moratorium period. It observed that several pending applications may not have any bearing on the resolution plan and could continue in terms of the resolution plan.

The bench also recorded that although the Supreme Court has admitted an appeal against the NCLAT judgment, no stay had been granted on passing the consequential order. It therefore proceeded to allow the application.

The bench directed that a monitoring committee be constituted to supervise implementation of the resolution plan until the payment plan is fully realised and distributed.

It also released Resolution Professional Amit Jain from his duties and directed him to forward all CIRP records and the approved resolution plan to the Insolvency and Bankruptcy Board of India.

The bench further observed that reliefs and concessions sought from the government or statutory authorities must be pursued before the concerned authorities. Those authorities will consider such requests in accordance with the applicable law.