# In the matter of James Hotels Ltd. CA Nos. 17, 37 & 176-2018 in CP (IB) No. 15-Chd-CHD-2017

> NCLT judgment dated 2018-08-08. Citation: TCN-2018-NCLT-00974. The case involves a corporate insolvency resolution process (CIRP) initiated against James…

- **Court:** NCLT
- **Order date:** 8 Aug 2018
- **Citation:** TCN-2018-NCLT-00974
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/james-hotels-ltd-ca-nos-17-37-176-2018-in-cp-ib-no-15-chd-chd-2017-c3cbdc5d

## Summary

### Background

The case involves a corporate insolvency resolution process (CIRP) initiated against James Hotels Limited by Punjab National Bank (PNB) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The CIRP was triggered due to the corporate debtor's default in repayment of loans to the banks. The Resolution Professional (RP) was appointed to manage the company's operations during the CIRP. Several applications were filed, including one seeking the eviction of respondents No.1 and 2 (Harvatar Singh Arora and Ajmer Singh Bhullar) from the hotel premises, as they were allegedly occupying the premises without authorization and disrupting the resolution process. The respondents challenged the RP's authority and the validity of the CIRP, alleging mismanagement and violation

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## Facts

Punjab National Bank (PNB) initiated Corporate Insolvency Resolution Process (CIRP) against James Hotels Limited due to loan defaults. The CIRP commenced on 27.04.2017. Navneet Gupta was appointed as the Resolution Professional (RP). Harvatar Singh Arora and Ajmer Singh Bhullar, promoters of James Hotels, were occupying the hotel premises. The RP sought their eviction, alleging unauthorized occupation. Arora and Bhullar claimed a right to occupy based on a resolution dated 10.02.2017. The RP challenged the resolution's validity, claiming it was fabricated. The RP also alleged that the respondents were disrupting the resolution process and influencing hotel staff. The respondents made counter-allegations of mismanagement and moratorium violations against the RP. The

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## Issues and analysis

### Issue 1: Whether the respondents No.1 and 2 can be asked to vacate the facility of the hotel accommodation …

**Ratio:** Section 60(5) of the IBC grants the NCLT jurisdiction to entertain or dispose of any

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**Reasoning:** The NCLT reasoned that the Resolution Professional is appointed by the Tribunal and is

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**Interpretation:** This section provides a wide scope for the NCLT to address issues related to

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**Application:** The NCLT applied this principle to assert its jurisdiction over the eviction of

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## Parties

- **Judges:** R.P.Nag…; Pradeep R.…
- **Appellants:** Punjab National…
- **Respondents:** James Hotels…

## Timeline

- **2017-03-21 — Petition…**: Petition filed against…
- **2017-04-27 — Admission of…**: Petition against M/s James…

## 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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