Mumbai, Jan 13: The National Company Law Tribunal (NCLT) has dismissed an application filed by the suspended promoters of Hotel Horizon Private Limited seeking rejection of the resolution plan approved for the stressed company under the Insolvency and Bankruptcy Code (IBC), 2016.
NCLT rejects promoters’ plea
In its order pronounced on January 12, 2026, a Bench presided over by Judicial Member Sushil Mahadeorao Kochey and Technical Member Prabhat Kumar rejected the interlocutory application filed by Sagar Sharma and another promoter.
The Tribunal held that no illegality, fraud or procedural irregularity had been established to warrant interference with the commercial decision of the Committee of Creditors (CoC).
Background of insolvency proceedings
Hotel Horizon Private Limited is undergoing a Corporate Insolvency Resolution Process (CIRP) pursuant to an order passed on November 19, 2024, on a Section 7 petition filed by Asset Care & Reconstruction Limited (ACRE).
The resolution plan submitted by a consortium comprising Oberoi Realty Limited, Shree Naman Developers Private Limited, and JM Financial Properties and Holdings Limited was approved by the CoC with a 100 per cent voting share on July 14, 2025.
As per the order, the resolution plan accepted by the CoC in July proposed the acquisition of the debt-laden hotel for Rs 919 crore.
Promoters allege conflict and undervaluation
The promoters of the corporate debtor (Horizon) challenged the resolution plan on multiple grounds, including alleged conflict of interest, undervaluation of assets, approval of inflated and time-barred claims, procedural lapses by the Resolution Professional, and other issues.
They contended that the plan value of approximately Rs 919 crore was inadequate considering the development potential of the Juhu property and alleged that material valuation reports were withheld to discourage serious bidders.
The rejection of the resolution plan was sought on the grounds that the promoters of Shree Naman Developers Private Limited—one of the successful resolution applicant (SRA) consortium members—are shareholders of CFM, an asset reconstruction company (ARC), which is a member of the Committee of Creditors.
They alleged, “The resolution plan was structured to enrich a CoC member at the cost of the corporate debtor and its stakeholders. The CoC approved the resolution plan in undue haste to allegedly avoid a potential adverse order rejecting inflated and time-barred claims.”
Tribunal’s observations
The promoters also argued that the plan contemplated an equity infusion of merely Rs 1 crore. “This indicates that neither the CoC nor the Resolution Professional intend to revive the corporate debtor, but instead seek to sell it at throwaway prices and strip its assets. The challenge mechanism was used to depress the highest bid of Rs 909 crore plus CIRP costs of approximately Rs 30 crore, totalling Rs 940 crore, in favour of an approved resolution plan of Rs 919 crore inclusive of all costs. This conduct during the CIRP undermined asset value, concealed material information, discouraged serious resolution applicants, and defeats the very spirit and objective of the IBC,” the plea maintained.
Rejecting these contentions, the Tribunal observed that most of the issues raised by the promoters had already been adjudicated in earlier applications and could not be reopened.
The Bench held that the IBC and CIRP Regulations do not bar financial creditors or their related entities from participating in a resolution plan, nor do they prevent CoC members from voting on such plans merely due to alleged conflicts of interest.
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The Tribunal further ruled that the approval of the resolution plan could not be faulted on the ground of haste, noting that the voting process complied with statutory timelines and that CoC members exercised their votes within the permitted window.
“It reiterated that the commercial wisdom of the CoC is paramount and beyond judicial interference unless clear illegality or material irregularity is demonstrated,” the order copy reads.
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