The National Company Law Tribunal (NCLT), has ordered the liquidation of M/s Tulip Hotels Private Limited under the Insolvency and Bankruptcy Code (IBC), 2016. The decision comes after the failure of the Corporate Insolvency Resolution Process (CIRP) to yield a resolution plan within the prescribed timeline.
The CIRP for Tulip Hotels began on May 16, 2023, after a petition filed by J.C. Flowers Asset Reconstruction Private Limited (JCFARPL), the Financial Creditor, was admitted. Mr. Gaurav Ashok Adukia was initially appointed as the Interim Resolution Professional (IRP), later replaced by Ms. Padma Ganesh following an order on July 17, 2023.
Despite efforts by the Resolution Professional (RP) to facilitate the process, no resolution plan was received before the expiration of the CIRP period on November 12, 2023. The Committee of Creditors (CoC), led by JCFARPL with a 70.83% voting share, failed to approve an extension or propose an alternative solution.
“Having considered the submissions and on perusal of averments made in the Interlocutory Application by JCFARPL holding 70.83% voting share in CoC, this Bench is satisfied and is of the considered opinion that the present Interlocutory Application is in consonance with Section 33(2) of the Code. Accordingly, this Authority has left with no option except to pass an order for Liquidation of the Corporate Debtor Company in the manner laid down in Chapter III of the Code considering the fact there is no Resolution Plan for consideration and CoC does not foresee any possibility of getting Plans for the Corporate Debtor,”held the Tribunal while passing the orders.
The Tribunal in observation emphasized that the liquidation was a necessary step given the lack of progress in the CIRP and the absence of viable resolution plans. It instructed the Liquidator to provide regular progress reports and work in compliance with IBC provisions.
