NCLT Denies Anirudh Agro Farms’ Resolution Plan for Viceroy Hotels
The resolution plan put out by Anirudh Agro Farms (AAFL) for Viceroy Hotels has been rejected by the National Company Law Tribunal (NCLT), which claims it breaches statutory restrictions. After the bank guarantees expired, this decision was made, which resulted in the continuation of the corporate insolvency resolution procedure (CIRP). According to MoneyControl.com, the NCLT has directed the resolution professional to solicit new bids. LiveMint hasn’t been able to independently confirm this data, though.
On June 9, the plea submitted by Govindarajula Venkata Narasimha Rao to accept Anirudh Agro’s resolution plan was rejected by the NCLT Hyderabad bench, which was made up of judicial member Venkata Ramakrishna Badarinath Nandula and technical member Charan Singh. 95.82% of the Committee of Creditors (CoC) had approved the plan.
Viceroy Hotels currently has two hotels in Hyderabad.
Asset Reconstruction Company’s petition was accepted by the NCLT in 2018 and the Corporate Insolvency Resolution Process (CIRP) procedures were started.
After the Committee of Creditors (CoC) hired resolution specialists and requested bids from interested parties, creditors reportedly submitted claims totaling 714.24 crore.
Despite over 88% of the CoC approving the resolution proposal put forward by CFM Asset Reconstruction, the NCLT rejected it in September 2021. The Reserve Bank of India (RBI) must have given the asset reconstruction business prior consent before the plan may be carried out, according to the court.
The NCLT repeatedly allowed delays to the insolvency procedure, enabling the CoC to change the resolution specialist and solicit new bids.
Five candidates, including Anirudh Agro Farms, responded to the bids received in June 2022 by submitting their proposals. Eventually, on November 10, 2022, the CoC accepted AAFL’s resolution plan, which was valued at 168.5 crore.
But the NCLT found that Anirudh Agro Farms’ bank guarantees had run out of time. Additionally, the tribunal turned down AAFL’s plan to pay creditors in five payments.
The National Company Law Tribunal (NCLT) is a quasi-judicial body established to handle civil corporate disputes that arise under the Companies Act. It has jurisdiction over matters such as claims of oppression and mismanagement within a company, the winding up of companies, and all other powers as prescribed by the Companies Act.
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