The court ruled that claims by certain financial creditors were valid while one was found to be time-barred, reaffirming the importance of verifying debt acknowledgments and limitations within insolvency proceedings.

ORDER

1. This Application bearing IA No. 219/2025 is filed by Mr. Sagar Sharma and Mr. Vishal Sharma (“Applicants”) in the Corporate Insolvency Resolution Process (“CIRP”) of Hotel Horizon Private Limited (“Corporate Debtor”) under the provisions of the Insolvency and Bankruptcy Code, 2016 (“Code”) seeking the following reliefs-

a. That this Hon’ble Tribunal be pleased to examine the contents of the present Application and after examining the same, be pleased to direct the Respondent Resolution Professional to reconstitute the COC and exclude third party entities being Union Bank of India, ACRE, JM Financials ARC and Phoenix ARC as members of COC in the Corporate Insolvency Resolution Process of Hotel Horizon Private Limited;

b. That this Hon’ble Tribunal be please to examine the contents of the present application and after examining the same be pleased to direct the Interim Resolution Process to reject the claims of various third Party Financial Creditors as appearing in the agenda of 1st COC meeting and/or Direct the IRP to admit their claims only of the quantum which is legally permissible, if any, and also change the Classification of the said Parties and accordingly recalibrate the COC.

c. That this Hon’ble Tribunal be pleased to examine the contents of the present Application and after examining the same, be pleased to appoint third patty unbiased forensic transaction auditor to audit the claims of the third-party entities being Union Bank of India, ACRE, JM Financials ARC and Phoenix ARC and thereafter place its report on record before this Hon’ble Tribunal;

d. That this Hon’ble Tribunal be pleased to examine the contents of the present Application and after examining the same be pleased to direct the Respondent Resolution Professional to produce on record documents on the basis of which the claims of third-party entities as financial creditors have been admitted along with copies of Form C submitted by such third party entities.

e. That this Hon’ble Tribunal be pleased to examine the contents of the present Application and after examining the same be pleased to direct Respondent to disclose all documents including Form C, on the basis of which claims of Union Bank of India, ACRE, JM Financials ARC and Phoenix ARC have been admitted by;

f. Pending the hearing and final disposal of the present Application, this Hon’ble Tribunal be pleased to restrain the Respondent Resolution Professional from holding and conducting further meetings of the COC and allowing the third party entities being Union Bank of India. ACRE, JM financials ARC and Phoenix herein to attend the same;

g. Pending the hearing and final disposal of the present Application, this Hon’ble Tribunal be pleased to stay the further process of the CIRP of the Corporate Debtor;

h. Interim and ad-interim reliefs in terms of prayer clause (a) to (g may kindly be granted;

i. Any such order/directions as this Hon’ble Tribunal may deem fit and proper in the facts and circumstances of the case be passed.

Brief Background

2.1 The Applicants are the suspended directors of the Corporate Debtor. This Tribunal had admitted the Corporate Debtor into CIRP vide order dated 19.11.2024 and appointed the Respondent herein as the Interim Resolution Professional (“IRP”). The said admission order was challenged u/s 61 of the Code by the Applicants before the Hon’ble National Company Law Appellate Tribunal (“NCLAT”) vide Company Appeal No. 2221 of 2024, which was dismissed vide order dated 17.02.2025. The Applicants challenged the said dismissal before the Hon’ble Supreme Court in Civil Appeal No. 3953/2025. However, the said appeal was dismissed by the Hon’ble Supreme Court vide order dated 04.04.2025, observing that the Applicants themselves have provided multiple settlement offers, and thus, there can be no question of non-disbursal of funds or doubt on any debt being due.

2.2 On 22.11.2024, the IRP published the Public Announce