NCLT Mumbai Approves ₹919 Crore Resolution Plan For Hotel Horizon; Consortium Led By Oberoi Realty Secures Unanimous CoC Nod

The National Company Law Tribunal, Mumbai Bench–I has approved the resolution plan submitted by a consortium comprising Oberoi Realty Limited, Shree Naman Developers Private Limited and JM Financial Properties and Holdings Limited for revival of Hotel Horizon Private Limited, under Section 31 of the Insolvency and Bankruptcy Code, 2016.

Commercial Structure

CIRP against Hotel Horizon was initiated on 19 November 2024. The CoC comprised CFM Asset Reconstruction Private Limited holding 46.01% voting share and JM Financial Asset Reconstruction Company Limited with 53.99%. Following issuance of Form G, receipt of 45 expressions of interest, and a structured challenge process, the consortium’s bid of ₹919 crore emerged as the highest against a reserve price of ₹909 crore. Five resolution plans were evaluated before the successful applicant was selected. The plan provides for upfront payment of ₹919 crore to secured financial creditors, representing approximately 74% recovery, with CIRP costs paid in priority. Although operational creditors were assessed to receive nil in liquidation, the consortium voluntarily earmarked ₹25 lakh towards their settlement. Performance guarantees aggregating ₹91.90 crore were furnished to secure implementation.

Legal Findings

The Tribunal held that the resolution plan satisfied all statutory requirements under Section 30(2) of the IBC and Regulations 37, 38 and 39 of the CIRP Regulations. Emphasising the primacy of commercial wisdom of the CoC, the Bench observed that the unanimous approval insulated the plan from judicial interference in the absence of illegality or material irregularity. Relying on the Supreme Court’s ruling in K. Sashidhar v. Indian Overseas Bank and Ghanshyam Mishra & Sons v. Edelweiss ARC, the Tribunal clarified that upon approval, all claims not part of the resolution plan stand extinguished and the plan binds all stakeholders, including statutory authorities. Finding the proposal viable, funded, and time-bound, the NCLT approved the plan, lifted the moratorium under Section 14, and directed quarterly monitoring of implementation.