# In the matter of Tulip Hotel Private Limited vs. JC Flowers Asset Reconstructions Pvt. Ltd. & Ors.

> NCLAT judgment dated 2024-04-09. Citation: TCN-2024-NCLAT-00522. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, by Tulip…

- **Court:** NCLAT
- **Order date:** 9 Apr 2024
- **Citation:** TCN-2024-NCLAT-00522
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/tulip-hotel-private-limited-vs-jc-flowers-asset-reconstructions-pvt-ltd-ors-a2b7ab32

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, by Tulip Hotel Private Limited against an order dated 16.04.2023 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench – IV) in Company Petition (IB) No. 05/MB-IV/2020. The Adjudicating Authority admitted the petition under Section 7 of the IBC and initiated Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor as a Corporate Guarantor. The appeal challenges the initiation of CIRP, arguing that the Section 7 application was not maintainable due to issues with the Power of Attorney of the financial creditor's representative, and that the Deeds of Guarantee were forged and fabricated.

## Facts

Yes Bank sanctioned credit facilities to Cox & Kings Ltd. ('Borrower No. 1') and Ezeego One Travels and Tours Ltd. ('Borrower No. 2'). A Cash Credit Facility was sanctioned to Borrower No. 1 on 30.05.2017 for Rs.100 cr, with a Master Facility Agreement executed on 06.06.2017. The facility was enhanced to Rs.350 cr on 26.06.2018, and further to Rs.450 cr on 12.03.2019. The Appellant executed a Deed of Guarantee on 26.04.2019 in favor of Yes Bank for Borrower No.1. On 20.11.2019, Yes Bank invoked the Corporate Guarantee demanding Rs.450 cr. A Cash Credit Facility was sanctioned to Borrower No. 2 on 02.05.2017 for Rs.100 cr, with a Term Loan Agreement on 16.05.2017. A mortgage deed was executed on 12.02.2018. An Addendum to the Facility letter dated 10.07.2019 was

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## Issues and analysis

### Issue 1: Whether the instant Section 7 application filed by Shri Rahul Dodeja on behalf of Respondent No.1 …

**Ratio:** An Application under Section 7 even if it is on the basis of Power of Attorney which is

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**Reasoning:** The court relied on the judgment of the Hon'ble Supreme Court and the 'Sameer Bansal

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**Interpretation:** The interpretation of Rule 4(1) of the Insolvency and Bankruptcy (Application

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**Application:** The court applied the ratio of the 'Sameer Bansal judgement' to the facts of

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Respondents:** Tulip Hotel…; JC FLOWERS ASSET…

## Timeline

- **2017-05-30 — Cash Credit Facility…**: Yes Bank sanctioned a Cash Credit…
- **2017-06-06 — Master Facility…**: A Master Facility Agreement was executed for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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