NCLAT Upholds Eviction of Hotel Operator from Hotel Property Post Resolution Plan

The National Company Law Appellate Tribunal (NCLAT) has upheld the eviction of a hotel operator from a hotel property, which was mandated as part of an approved resolution plan. The hotel operator had challenged the eviction, which was a key component of the plan to resolve the insolvency of the hotel's owner. The NCLAT reaffirmed the legal principle that a resolution plan approved by the Committee of Creditors (CoC) and the NCLT is binding on all stakeholders, including operational creditors and tenants like the hotel operator. The tribunal held that the operator could not claim any special rights to continue occupying the property once the resolution plan, which provided for their eviction to enable a clean transfer of the asset to the successful resolution applicant, was legally sanctioned. This judgment strengthens the finality of an approved resolution plan.