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Informist, Thursday, Sept. 25, 2025

 

NEW DELHI – The National Company Law Appellate Tribunal Thursday sent to the National Company Law Tribunal, Mumbai bench the resolution plan submitted by a consortium of Rare Asset Reconstruction Ltd. and Check-Inn Hotels Pvt. Ltd. for debt-ridden Rajesh Business and Leisure Hotels Pvt. Ltd. The appellate tribunal also set aside the tribunal's July order wherein it had rejected the resolution plan by the consortium. The appellate tribunal asked the parties to appear before the NCLT to get approval for the consortium's resolution plan. 

 

 

The committee of creditors of Rajesh Business, in its commercial wisdom, was entitled to approve the consortium's plan, which it did after due deliberation and with unanimous consent, said the appellate tribunal. "The material irregularities alleged in the impugned (NCLT) order and violation of Section 30(2) of the (Insolvency and Bankruptcy) Code and relevant regulations are not borne out by the record, and no contravention of the Code is established," said the tribunal.

 

 

 

 

The appellate tribunal noted that in the overall evaluation of the resolution plan as per the evaluation matrix Sankalp Recreation Pvt. Ltd., an unsuccessful resolution applicant, had the least score. The consortium, on the other hand, was the highest scorer in the evaluation matrix, the appellate tribunal added. The committee of creditors had gone by the logical decision to be made in such a situation which was to choose the plan with the highest score, said the appellate tribunal.

 

In 2022, the tribunal had admitted the petition by ICICI Bank to start insolvency proceedings against Rajesh Business. In 2023, the committee of creditors approved the resolution plan given by the consortium of Rare Asset Reconstruction and Check-Inn Hotels. However, Sankalp Recreation opposed the consortium's resolution plan in the Mumbai tribunal. Even some promoters and former directors of the debt-ridden company contested the resolution plan.

 

Sankalp Recreation, which had submitted a resolution plan with Globe Ecologistics Pvt. Ltd. as a consortium, said that there were material irregularities in the conduct of the insolvency process of the debt-ridden company. Sankalp Recreation said that in the final list published by the resolution professional, Rare Asset's name was shown individually as a resolution applicant. Later, it was found out that Rare Asset Reconstruction and Check-Inn Hotels had become the successful resolution applicant of the company, said Sankalp Recreation.

 

Sankalp Recreation further said that it came to know from a newspaper report that the approved resolution plan by Rare Asset Reconstruction and Check-Inn Hotels offered only INR 4.60 billion against their offer of INR 4.90 billion upfront. The promoters and former directors of the debt-ridden company said that the resolution professional had failed to take into consideration the interests of all stakeholders and the shareholders are not being paid any amount under the resolution plan.

 

In July, the Mumbai tribunal observed that the resolution plan of the consortium did not meet all the parameters laid down under the insolvency law. Further, the tribunal said that there was "material irregularity" in non-furnishing the copy of the resolution plan to erstwhile directors. The tribunal granted liberty to the resolution professional and committee of creditors of the debt-ridden company to re-run the process strictly in accordance with the Insolvency and Bankruptcy Code, 2016.

 

On Thursday, the shares of ICICI Bank ended 0.5% lower at INR 1,375.80 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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