NCLT dismisses plea against Pancard Clubs resolution plan
National Company Law Tribunal (NCLT) has dismissed a petition filed by Ashdan Properties against Chemhub Tradelink's committee of creditors-approved resolution plan for Pancard Clubs. Ashdan was one of the three bidders interested in acquiring the bankrupt Pancard, which develops and operates hotels and resorts.
Pancard Clubs has more than 1.5 million timeshare subscribers, who are classified as financial creditors. In its ruling, dismissing Ashdan's appeal, the court said around 23% of the financial creditors participated in the voting process, with a clear majority of 19.38% voting in favour of the resolution plan proposed by Chemhub Tradelink.
The tribunal recommended that the Insolvency & Bankruptcy Board of India (IBBI) use Pancard as a case study to form guidelines for instances where a single insolvency professional acts as the authorised representative of a large number of financial creditors.
The NCLT admitted Pancard for the corporate insolvency resolution process on September 9, 2022, and appointed Rajesh Sureshchandra Sheth as the resolution professional (RP) and Vitthal Dahake as the authorised representative of financial investors.
After the voting took place and Chemhub's plan was approved by the CoC, Ashdan approached the court. The NCLT asked the CoC to hold another round of voting in which the creditors again voted in favour of Chemhub.
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