# In the matter of EIH Limited vs. Subodh Kumar Agrawal & Ors.

> NCLAT judgment dated 2024-12-11. Citation: TCN-2024-NCLAT-00032. This case involves an appeal against an order passed by the National Company Law Tribunal…

- **Court:** NCLAT
- **Order date:** 11 Dec 2024
- **Citation:** TCN-2024-NCLAT-00032
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/eih-limited-vs-subodh-kumar-agrawal-ors-1b2b955e

## Summary

### Background

This case involves an appeal against an order passed by the National Company Law Tribunal (NCLT), Hyderabad Bench, approving a resolution plan for Golden Jubilee Hotels Private Limited. EIH Limited, the appellant, is the suspended promoter of the corporate debtor and operator of the hotel. The dispute centers around the eligibility of EIH Limited to continue as the hotel operator under the resolution plan, given its status as a promoter and shareholder of the corporate debtor. The appellant argues that Section 29A of the Insolvency and Bankruptcy Code (IBC) should not apply to them as they are merely a third-party operator and not a resolution applicant. The respondents, including the Resolution Professional and the Successful Resolution Applicant (SRA), contend that

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## Facts

EIH Limited, the appellant, is the suspended promoter of Golden Jubilee Hotels Private Limited, the corporate debtor, and operates the Hotel Trident. A shareholders agreement was executed between My Home Constructions Private Limited, VBC Finance & Leasing Limited, and EIH Limited. The Corporate Debtor entered into a management agreement with the Appellant. Disputes arose between the Appellant and the Corporate Debtor, leading to arbitration proceedings. Bank of Baroda, a financial creditor, filed an application under Section 7 of the IBC for initiating CIRP against the Corporate Debtor. The Adjudicating Authority admitted the application and declared a moratorium. The Resolution Professional invited Expression of Interest (EOI) from prospective resolution

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in holding that EIH Limited, being a promoter of the …

**Ratio:** Section 29A of the IBC disqualifies certain individuals or entities from being resolution

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**Reasoning:** The Adjudicating Authority and the Appellate Tribunal found that EIH Limited, as a

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**Interpretation:** Section 29A is interpreted broadly to include not only resolution applicants

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**Application:** In this case, EIH Limited's status as a promoter and shareholder of the

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## Parties

- **Judges:** Naresh Sa…; Rakesh Kuma…
- **Appellants:** EIH Lim…
- **Respondents:** Golden Jubilee…; Subodh Kumar…

## Timeline

- **2006-08-05 — Shareholders A…**: My Home Constructions Private Limited, VBC Finance & Leasing Limited, and EIH Limited…
- **2007-05-09 — Development A…**: A Development Agreement was executed between the Corporate Debtor and the Andhra Pradesh…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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