# Approval of Resolution Plan - Nandan Hotels Limited

> NCLT judgment dated 2017-12-14. Citation: TCN-2017-NCLT-00053. The case involves a company petition filed by an operational creditor under Section 9 of the…

- **Court:** NCLT
- **Order date:** 14 Dec 2017
- **Citation:** TCN-2017-NCLT-00053
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/approval-of-resolution-plan-nandan-hotels-limited-a5e66064

## Summary

### Background

The case involves a company petition filed by an operational creditor under Section 9 of the Insolvency & Bankruptcy Code (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against the respondent/corporate debtor, M/S. Nandana Hotels Limited. The Tribunal had previously passed an order on 17.08.2017 appointing an Insolvency Resolution Professional (IRP) and issued a moratorium order under Section 14 of the Code. The IRP filed a report on 04.09.2017 and made a public announcement as required by the I&B Code. During the CIRP, the petitioner/operational creditor and the corporate debtor entered into a memorandum of understanding (MoU) where the corporate debtor agreed to repay the money owed. Four post-dated cheques were issued, and one was encashed.

## Facts

M/s. Jahnvi Makwana Construction Private Limited, an operational creditor, filed a company petition under Section 9 of the Insolvency & Bankruptcy Code (IBC) against M/s. Nandana Hotels Limited, the corporate debtor. The Tribunal initiated the Corporate Insolvency Resolution Process (CIRP) and appointed an Insolvency Resolution Professional (IRP). A moratorium was imposed under Section 14 of the IBC. The IRP filed reports indicating that the corporate debtor had entered into a memorandum of understanding (MoU) with the operational creditor to repay the debt. Four post-dated cheques were issued, and one was encashed. The IRP also reported that the corporate debtor had no financial creditors. The resolution plan was accepted by 95% of the creditors. The resolution

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## Issues and analysis

### Issue 1: Whether the Insolvency Resolution Process initiated against the Respondent-Corporate Debtor had …

**Ratio:** The purpose of the CIRP is to resolve the insolvency of the corporate debtor, either

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**Reasoning:** The Tribunal noted that the operational creditor and the corporate debtor had entered

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**Interpretation:** The interpretation of achieving the purpose of CIRP involves assessing whether

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**Application:** In this case, the Tribunal determined that the CIRP had achieved its purpose

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## Parties

- **Judges:** Ratakonda…; Ashok Kumar…
- **Appellants:** M/s. Jahnvi…
- **Respondents:** M/s. Nandana…

## Timeline

- **2017-08-17 — Tribunal…**: Tribunal passed an order appointing an Insolvency Resolution Professional and passed a…
- **2017-09-04 — IRP Repo…**: The IRP filed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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