NCLT Mumbai Admits Section 7 Petition Against M/S Tulip Hotels Private Limited For Defaults Of More Than Rs. 900 Crores
Udai Yashvir Singh
19 May 2023 11:30 AM GMT
The NCLT Mumbai bench comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member) has admitted a petition under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) against M/s Tulip Hotels Private Limited (“Tulip Hotels”) and initiated Corporate Insolvency Resolution Process (“CIRP”) against it. The Application...
The NCLT Mumbai bench comprising of Shri Kishore Vemulapalli (Judicial Member) and Shri Prabhat Kumar (Technical Member) has admitted a petition under Section 7 of Insolvency and Bankruptcy Code, 2016 (“IBC, 2016”) against M/s Tulip Hotels Private Limited (“Tulip Hotels”) and initiated Corporate Insolvency Resolution Process (“CIRP”) against it.
The Application was initially filed by Yes Bank but the debt was subsequently assigned to J C Flowers Asset Reconstructions Pvt. Ltd (“Financial Creditor”).
M/s Tulip Hotels Private Limited had defaulted in payment of two Guarantees amounting to Rs. 900,00,00,000/- (Rs. 900 Crores) in its capacity as a guarantor for loans disbursed by Yes Bank to Cox and Kings Limited and Ezeege One Travel & Tours Limited (“Principal Burrowers”)
Two Deeds of Guaranteed dated 26.04.2019 and 10.07.2019 of Rs. 450,00,00,000 (Rs. 450 crores) each were executed in favour of the Financial Creditor. Both the Principal Burrowers failed to repay the Financial Debt including the Principal Amount, interest and other charges. Thus the Financial Creditor vide 2 Letters of Invocation of Guarantee dated 20.11.2019 and 26.08.2019 invoked the Deed of Corporate Guarantee dated 26.04.2019 and 10.07.2019 respectively.
Tulip Hotels on the contrary contended that it was not related to either of the Principal Burrowers. It contended that it had not received funds from Cox and Kings Ltd since 31.03.2011 and had never been funded by Ezeego One Travel & Tours Ltd. It had further stated that it was not aware of any Financial Assistance being provided to either of the Principal Burrowers and that the signatures appearing on the Deed of Guarantee being forged.
The Tribunal observed that Tulip Hotels was liable to the credit facilities availed by the Principal Burrowers. The petition was within the limitation period and was complete in all respects. Thus the Tribunal admitted the Petition.
Case:
J C Flowers Asset Reconstructions Pvt. Ltd vs M/s Tulip Hotels Private Limited
Case No.
CP (IB) No. 05/MB-IV/2020
Click Here To Read/Download Order
