NCLT Mumbai Approves Rs. 730 Crore Resolution Plan For Rajesh Business And Leisure Hotels

The National Company Law Tribunal (NCLT) in Mumbai has approved a Rs. 730 crore resolution plan for Rajesh Business and Leisure Hotels Pvt Ltd, submitted by a consortium of Rare Asset Reconstruction Limited and Check-Inn Hotels Pvt Ltd.

A bench of Judicial Member Ashish Kalia and Technical Member Sanjiv Dutt was dealing with an application filed by the resolution professional seeking approval of the plan, which had been cleared with a 100% voting share of the committee of creditors.

The corporate debtor, engaged in hotel construction in Mumbai, was admitted into the corporate insolvency resolution process on April 20, 2022, following a petition by ICICI Bank. The project, initially tied up with Radisson and later rebranded as “Hotel Chedi,” remained incomplete due to financial distress and funding constraints.

Under the approved plan, Rs. 461 crore has been earmarked for secured financial creditors and Rs. 6 crore for operational creditors, while insolvency resolution process costs will be paid in priority. The consortium has also proposed an infusion of around Rs. 250 crore as working capital to complete the hotel project and revive operations.

The tribunal noted that the resolution plan satisfies the requirements under Section 30(2) of the Insolvency and Bankruptcy Code and reiterated that the commercial wisdom of the committee of creditors is paramount.

“In view of the discussions and the law thus settled, we are of the considered view that the Plan meets the requirements of Section 30(2) of the Code and Regulations 37, 38, 38(1A), and 39(4) of the CIRP Regulations. The Plan is not in contravention of any of the provisions of Section 29A of the Code, as undertaken by the SRA, and is in accordance with the law. We are satisfied that the Plan has provisions for its effective implementation. As discussed above, we find that the present IA deserves to be allowed,” the tribunal said.

Accordingly, the NCLT approved the plan, brought the moratorium to an end, and directed implementation of the plan, including handing over control and records of the corporate debtor to the successful resolution applicant.