Home / Business and Economy / NCLAT Revives Promoters' Resolution Plan for JC World Hospitality, Orders Swift Decision
NCLAT Revives Promoters' Resolution Plan for JC World Hospitality, Orders Swift Decision
16 Nov
Summary
- NCLAT sets aside NCLT order declaring promoters ineligible
- NCLAT directs NCLT to decide on resolution plan within 3 months
- Promoters' plan was approved by 100% of commercial space buyers
In a significant development, the National Company Law Appellate Tribunal (NCLAT) has set aside the orders of the National Company Law Tribunal (NCLT) that had declared the promoters of JC World Hospitality ineligible to submit their resolution plan under Section 29A of the Insolvency and Bankruptcy Code (IBC).
The NCLAT bench, comprising Chairperson Justice Ashok Bhushan and Member, Technical Barun Mitra, has revived the application filed by the Resolution Professional (RP) of JC World Hospitality before the Delhi bench of NCLT, seeking approval for the bids submitted by the promoters. The appellate tribunal has directed the NCLT to take a decision on the plan approval application within three months.
The NCLAT observed that the NCLT had "in a callous manner without looking into materials on record" concluded that the promoters are disqualified, which is "perverse and unsustainable." The appellate tribunal noted that the promoters' resolution plan was approved with 100% votes of the commercial space buyers, and the voting was conducted in accordance with the IBC.
The NCLAT has also pulled up the NCLT for rejecting an email from the Ministry of Corporate Affairs (MCA) dated March 7, 2025, which had removed the disqualification of the promoters, Rita Dixit and Vijay Kant Dixit, effective August 13, 2018, and May 29, 2018, respectively.
