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NCLT Mumbai Approves ₹1,611-Crore Resolution Plan For Gstaad Hotels, Dismisses Objections
The Mumbai bench of the ( ) has approved the ₹1,611-crore submitted by for , the owner of the JW Marriott hotel in Bengaluru. The tribunal, comprising Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar, also dismissed objections filed by suspended directors Deepak B. Raheja and Anita D. Raheja, finding no merit in their challenges to the plan or the underlying .
Background of the Insolvency
Gstaad Hotels was admitted into CIRP on , following a petition by , which held a dominant 95.76% in the . The , Jayesh Sanghrajka, received 43 and eventually 13 resolution plans. After negotiations, the CoC approved Shree Naman’s plan with 98.96% of on . The plan envisions redeveloping the hotel into a high-end mixed-use property with luxury hospitality, residential, retail, and office spaces, while keeping the as a .
Objections Raised by Suspended Directors
The suspended directors opposed the plan on multiple grounds, including defective constitution of the CoC due to alleged status of and . They also challenged the admission of Omkara ARC’s claim, arguing it was inflated with and lacked proper verification. Other objections related to the , alleged failure to preserve the ’s value, and the extinguishment of despite receiving 138.78% recovery.
Tribunal’s Analysis and Key Observations
The emphasised its limited jurisdiction under , which restricts scrutiny to whether the plan is approved by the CoC, complies with and regulations, and provides for . The tribunal held that the of the CoC cannot be interfered with absent .
Addressing the issue, the tribunal examined the definition under and found that Kanazawa and Ahuja did not meet the criteria. It noted that while Ahuja Finance was a related party under the , the ’s definition is exhaustive and must be strictly applied. The tribunal also rejected the challenge to Omkara ARC’s claim, observing that the claim was admitted based on a detailed report by , which had been reviewed in earlier proceedings, and that the objectors failed to point out any misapplication of interest or appropriation.
The tribunal further held that since all creditors, including and , are being paid in full, objections regarding security perfection or treatment lose significance. It directed that any after full settlement of all creditors, including related parties, must accrue to the shareholders.
Court’s Decision
The found the compliant with all statutory requirements under and . The plan’s total consideration of ₹1,611 crore substantially exceeds the of ₹1,028.33 crore, demonstrating . The tribunal approved the plan, making it binding on all stakeholders, and dismissed the (IA ( )/2516/2026). It directed the to file an updated reflecting the inclusion of creditors and the allocation of to shareholders, ratified by the CoC.
The approval marks a significant step in the revival of Gstaad Hotels, with the plan set to transform the property into a premium mixed-use development while ensuring full repayment to creditors.
