NCLT Approves Macrotech Developers' Resolution Plan for V Hotels Ltd. After Redetermination of Secured Creditors' Claims

Background

The National Company Law Tribunal (NCLT), Mumbai Bench, has approved the resolution plan submitted by Macrotech Developers Ltd. (MDL) for the corporate insolvency resolution process (CIRP) of V Hotels Ltd. The approval came after the NCLT directed the resolution professional (RP) to redetermine the claims of the secured financial creditors, Asset Reconstruction Company (India) Ltd. (ARCIL) and Pegasus Asset Reconstruction Company Pvt. Ltd. (Pegasus).

Arguments

The promoter and shareholder of V Hotels Ltd. challenged the amount of claims admitted by the RP for the secured financial creditors, ARCIL and Pegasus. The promoter objected to the computation of interest at 22% by the financial creditors. The NCLT initially accepted the RP's interpretation of the 22% interest rate, but the promoter's appeal against this decision was allowed by the National Company Law Appellate Tribunal (NCLAT), which held that ARCIL was entitled to claim interest only at 14.85%.

Court's Analysis and Reasoning

The NCLAT directed the RP to redetermine the claim of ARCIL based on the 14.85% interest rate. After this order, Pegasus also requested the RP to redetermine its claim in line with the NCLAT's decision on ARCIL's claim. The RP filed an application before the NCLT, seeking permission to redetermine Pegasus' claim, which was granted.

The NCLT noted that the redetermination of the claims of ARCIL and Pegasus would only affect the inter-se distribution among the secured financial creditors and would not have any impact on the overall resolution plan or its implementation. The Supreme Court also clarified that the redetermination of the claims would not affect the resolution plan.

Decision

The NCLT approved the resolution plan submitted by MDL, as well as the addendum to the plan that incorporated the redetermined claims of ARCIL and Pegasus. The NCLT found that the resolution plan complied with the requirements of the Insolvency and Bankruptcy Code and was in the best interests of the stakeholders.

The approval of the resolution plan, despite the redetermination of the secured creditors' claims, highlights the NCLT's focus on ensuring the successful implementation of the resolution process while balancing the interests of all stakeholders involved.