NCLT dismisses resolution for Rajesh Lifespaces' hotels business, orders rerun
NCLT) has dismissed the resolution plan submitted for realty developer Rajesh Lifespaces' hotel business, Rajesh Business & Leisure Hotels, citing non-conformity with statutory requirements and procedural irregularities.
The corporate insolvency resolution process (CIRP) of Rajesh Business & Leisure Hotels, managed by the resolution professional (RP), had witnessed competing proposals from consortiums led by Sankalp Consortium and Rare ARC-Shree Naman Developers.
Initially, the resolution plan offered by Rare ARC and Shree Naman Developers was chosen by the committee of creditors (CoC) but has now been dismissed due to procedural lapses and non-compliance with statutory norms.
The contentious points raised during proceedings included alleged irregularities in the conduct of the CIRP and deficiencies in information disclosure to stakeholders.
In the case, counsel Nausher Kohli appeared for Sankalp Recreation and opposed the approval of the resolution plan submitted by the successful resolution applicant and argued that there have been material irregularities in the conduct of the CIRP.
Advocate Rohit Gupta appeared for the original promoters of the company and sought to declare that the resolution plan as well as the process adopted for approval of the plan is contrary to the law.
The ruling, delivered by NCLT members Anil Rajchellan and Kuldip Kumar, highlighted several lapses, including the delayed provision of essential documents to the erstwhile directors and purported non-compliance with the stipulated
