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Informist, Thursday, Jan. 22, 2026

 

NEW DELHI – The National Company Law Appellate Tribunal Thursday set aside an order of the Delhi bench of the National Company Law Tribunal to initiate insolvency proceedings against Aman Hospitality Pvt. Ltd. The tribunal had on Jan. 12 admitted an insolvency plea by Bank of India for unpaid dues of INR 1.19 billion. The appellate tribunal set aside the inolvency process following Aman Hospitality's undertaking to pay INR 1.19 billion to Bank of India.

 

The amount paid by Aman Hospitality will be subject to the determination of the total amount of Bank of India's entitlement against the company, which is pending consideration in the debt recovery tribunal. If the bank is entitled to a lesser amount, it will refund the excess to Aman Hospitality, the appellate tribunal said.

 

Aman Hospitality is engaged in the real estate and hotel business and operates a five-star deluxe hotel, The Leela Ambience Convention Hotel, in Shahdara, Delhi.

 

The order of the Delhi tribunal, which was passed without taking into consideration the offer of deposit by Aman Hospitality of the entire amount along with payment in the name of the registrar of NCLT, cannot be sustained, the appellate tribunal said. "We, thus, after considering the submission of the parties, perusal of the materials on record and sequence of the fact, are satisfied that the adjudicating authority committed error in passing the order dated 12.01.2026 (Jan. 12, 2026) admitting Section 7(under the Insolvency and Bankruptcy Code, 2016) application in the facts of the present case," the appellate tribunal said.

 

Raj Singh Gehlot, the suspended director of Aman Hospitality, said the company filed an application on Dec. 24 with the tribunal, offering to deposit the entire amount claimed by the bank, along with the payment order, in the name of the NCLT registrar. This application was listed before the Delhi tribunal on Jan. 7 for hearing and adjourned for further consideration on Feb. 2, Gehlot said. The Delhi tribunal ought not to have admitted the insolvency petition without considering the application for deposit of money, Gehlot said.

 

In 2010, Bank of India sanctioned a term loan of INR 1 billion to Aman Hospitality to part-finance the construction of the hotel in Shahadra. In 2011, the limit was increased, and the bank sanctioned an additional INR 380 million.  

 

Although the hotel began operations in 2012, Aman Hospitality failed to service its debt. To resolve this, a master joint lender forum agreement was executed in 2015 to explore the possibility of rectifying the irregularities in the company's account. Meanwhile, the bank sanctioned a funded interest term loan of INR 269.2 million to the company. 

 

In 2018, Aman Hospitality's account was declared a non-performing asset. Despite repeated one-time settlement discussions, loan recall notices, and legal proceedings, including action by the Debt Recovery Tribunal, Aman Hospitality failed to discharge its liability, Bank of India said. Consequently, Bank of India moved the Delhi tribunal to start insolvency proceedings against Aman Hospitality. 

 

Thursday, Bank of India's shares ended 5.7% higher at INR 166.42 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Saji George Titus

 

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