Suspended Directors, Shareholders Challenge Order Admitting Section 7 Application in Asian Hotels Case

By Supreme Today News Desk

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11 January 2024

What happened

judgement

Subject : Corporate Insolvency

Suspended Directors, Shareholders Challenge Order Admitting Section 7 Application in Asian Hotels Case

The article reports on four appeals filed by the Suspended Director of the Corporate Debtor - Asian Hotels (West) Ltd. and shareholders of Corporate Debtor challenging the order passed by the Adjudicating Authority (National Company Law Tribunal) New Delhi Bench IV admitting Section 7 application filed by the Financial Creditor as well as orders passed in two Interlocutory Applications. These appeals, arising out of the same proceedings, were heard together and decided by a common judgment. The article provides a detailed account of the events leading to the appeals, including the financial assistance availed by the Corporate Debtor from Yes Bank, the default committed by the Corporate Debtor, and the subsequent legal actions taken by both parties. It also highlights the various orders passed by the Adjudicating Authority and the interim orders issued by the Tribunal during the pendency of the appeals. The article concludes with a discussion on the main question to be considered in the appeals, which is whether the decision of the CoC to reject the proposal under Section 12A dated 11.08.2023 as revised on 04.10.2023 is arbitrary and unsustainable.

Section 7 application - Financial Creditor - Corporate Debtor - Committee of Creditors (CoC) - Resolution Professional - Insolvency and Bankruptcy Code (IBC)

#InsolvencyLaw #CorporateDebtor #FinancialCreditor

Case Title: Click Here to view Official Document

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