Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(NCLT) 281

NATIONAL COMPANY LAW TRIBUNAL
Labh Singh, Judicial Member, Rekha Kantilal Shah, Technical Member
MR. JITENDRA LOHIA – Appellant
Versus
MULTIPLE HOTELS PRIVATE LIMITED – Respondent
CP (IB) NO. 204/KB/2019|IA (IB) (Plan) No. 3/KB/2025|RST.A (IBC)/11(KB)2025

Advocates:
For the Appellants/Petitioners: Urmila Chakraborty, Shreya Jain

Resolution plan approved despite 97% haircut as compliant with IBC requirements; unclaimed pre-CIRP claims extinguished; limited reliefs granted; new management immunised from past criminal liability.

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Sections 7, 14, 15, 18, 20, 21, 25, 29, 30(6), 31, 32A, 43, 45, 50, 60(5), 66 - Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 - Regulations 6, 17(1), 35A, 36, 36A, 36B, 39(4) - Corporate Insolvency Resolution Process - Approval of resolution plan - Plan submitted by resolution applicant approved by CoC with 100% voting share - Total plan amount of Rs. 1,10,00,000/- including CIRP costs against admitted claims of Rs. 37,72,90,297/- resulting in 97.08% haircut - Plan found compliant with mandatory provisions including fair value, liquidation value, creditor distribution, implementation timeline, and Section 29A eligibility - No avoidance transactions identified - Reliefs, waivers limited to Code and Companies Act; others to be sought from respective authorities - Unclaimed pre-CIRP claims extinguished upon approval - Moratorium ceases - RP discharged. (Paras 22-60)

(B) IBC - Section 31(4) - Statutory approvals and obligations to be complied within one year from approval order.

(C) IBC - Extinguishment of claims - Claims not part of plan stand extinguished and binding on all stakeholders including governments; no proceedings for unclaimed pre-approval dues. (Para 50)

(D) IBC - Section 32A - Criminal liability of corporate debtor effaced upon new management takeover; old management liable for pre-CIRP offences. (E) Guarantees - Approval does not discharge personal guarantors; liability persists per guarantee terms.

Facts of the case:
Financial creditor initiated CIRP admitted on 29.12.2022. Single secured creditor claim admitted. Multiple Form G issued for EOI and plans with extensions approved by CoC. One compliant plan received, revised, and unanimously approved by CoC on 13.01.2025 via e-voting. RP sought NCLT approval under Sections 30(6) and 31.

Findings of Court:
Resolution plan approved subject to directions; performance security retained; records to be handed over; pending applications disposed.

Issues: Compliance of plan with Code and Regulations; treatment of unclaimed claims, avoidance transactions, statutory approvals, reliefs/waivers, guarantors, and criminal proceedings.

Ratio Decidendi: Plan satisfies commercial wisdom of CoC, adheres to mandatory requirements under Section 30(2); unclaimed pre-CIRP claims extinguished; reliefs beyond NCLT jurisdiction deferred to authorities; new management protected under Section 32A.

Result: Resolution plan approved.

Table of Content
1. rp seeks approval of resolution plan (Para 1 , 2 , 3)
2. cirp initiation and coc constitution (Para 4 , 5 , 6)
3. eoi and resolution plan invitations extended (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17)
4. resolution plan approved by coc unanimously (Para 18 , 19 , 20 , 21)
5. compliance with ibc and cirp regulations (Para 22 , 23 , 24 , 25)
6. resolution plan details and creditor payouts (Para 26 , 27 , 28 , 29)
7. no preferential transactions identified (Para 30 , 31 , 32 , 33 , 41)
8. court verifies plan viability and compliance (Para 34 , 35 , 36 , 37 , 38 , 39 , 40 , 42 , 44)
9. statutory approvals within one year (Para 45 , 46 , 47)
10. unclaimed claims extinguished post-approval (Para 48 , 49 , 50 , 51 , 52)
11. personal guarantees remain enforceable (Para 53 , 54 , 55)
12. section 32a protects new management (Para 56 , 57)
13. resolution plan approved with conditions (Para 58 , 59 , 60 , 61)

Per: Rekha Kantilal Shah, Member (Technical)

1. This Application has been preferred by the Mr. Jitendra Lohia, Resolution Professional (‘RP’) of the Corporate Debtor, Multiple Hotels Private Limited under section 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), seeking direction for final approval of Resolution Plan submitted by Ms. Aditi Sinha.

Prologue

2. The CoC at its 14th Meeting convened on 13.01.2025 has approved the Resolution Plan submitted by Ms. Aditi Sinha (Successful Resolution Applicant /SRA) by 100% voting share and a Letter of In C.P (IB) No.204/KB/2019 Intent (LoI) was issued on 21.01.2025, which was unconditionally accepted by Ms. Aditi Sinha on 21.01.2025.

Initiation of Corporate Insolvency Resolution Process

3. The Company Petition in C.P (IBC) No 204/KB/2019 was filed by the Kotak Mahindra Bank Limited, Financial Creditor to initiate Corporate Insolvency Resolution Process (“CIRP”) under section 7 of the IBC 2016, which was admitted vide order dated

29.12.2022. Publication

4. The Erstwhile IRP made public announcement in Form- A on

31.12.2022 in Business Standard (English Edition) and Aajkal ( Bengali Edition) newspaper in accordance with section 15 of IBC read with Regulation 6 of the CIRP Regulations, regarding initiation of CIRP and for inviting all the creditors of Multiple Hotels Private Limited to submit their claim. The last date for submission of proof of claim was 12.01.2023.

Constitution of CoC

5. The Erstwhile IRP duly constituted the Committee of Creditors (“CoC”) of the Corporate Debtor under Section 21 of the IBC, 2016 on 17.01.2023 in accordance with Regulation l7(1) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution In C.P (IB) No.204/KB/2019 Process for Corporate Persons) Regulations, 2016. The Erstwhile IRP received one claim from secured Financial Creditor. The CoC was constituted on 17.01.2024 with the following creditor of the CoC:

CoC:

Collation of Claims

6. It is submitted that the RP received claim from one Financial Creditor i.e., Kotak Mahindra Bank and no claims were received from the Unsecured and Operational Creditors (Workmen, Employee and Statutory Dues). The Total amount claimed and admitted are summarized as under:

a) Claims by Creditors (Secured)

Appointment of Registered Valuers and Transactional Auditors:

7. It is submitted by the RP that during the previous CIRP the registered valuers and transaction auditor were duly appointed for conducting valuation and audit of the Corporate Debtor. During 3rd CoC Meeting held on 22.12.2022 the member resolved that valuation by the erstwhile valuers be continued and adapted.

In C.P (IB) No.204/KB/2019 The excerpts of the valuation report are as follows (Page No-

266 of supplementary affidavit dated 06.11.2025):

CIR Process and its Compliances

8. The Applicant submits that in terms of the provisions of section

25(2)(h) of the code read with Regulation 36A(1) of the Insolvency and Bankruptcy of India (I

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2026 Supreme(Online)(NCLT) 281

NATIONAL COMPANY LAW TRIBUNALLabh Singh, Judicial Member, Rekha Kantilal Shah, Technical MemberMR. JITENDRA LOHIA – AppellantVersusMULTIPLE HOTELS PRIVATE LIMITED – RespondentCP (IB) NO. 204/KB/2019|IA (IB) (Plan) No. 3/KB/2025|RST.A (IBC)/11(KB)2025

Resolution plan approved despite 97% haircut as compliant with IBC requirements; unclaimed pre-CIRP claims extinguished; limited reliefs granted; new management immunised from past criminal liability.

Cases Referred (3)

NATIONAL COMPANY LAW TRIBUNAL
Labh Singh, Judicial Member, Rekha Kantilal Shah, Technical Member
MR. JITENDRA LOHIA – Appellant
Versus
MULTIPLE HOTELS PRIVATE LIMITED – Respondent
CP (IB) NO. 204/KB/2019|IA (IB) (Plan) No. 3/KB/2025|RST.A (IBC)/11(KB)2025