# Approval of Resolution Plan - Maha Associated Hotels Private Limited

> NCLT judgment dated 2024-08-13. Citation: TCN-2024-NCLT-00801. The case involves the Corporate Insolvency Resolution Process (CIRP) of M/s Maha Associated…

- **Court:** NCLT
- **Order date:** 13 Aug 2024
- **Citation:** TCN-2024-NCLT-00801
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-maha-associated-hotels-private-limited-6937677f

## Summary

### Background

The case involves the Corporate Insolvency Resolution Process (CIRP) of M/s Maha Associated Hotels Private Limited. The CIRP was initiated following an application by an operational creditor, M/s UVA Engineers Private Limited. The Adjudicating Authority admitted the application on 20.09.2018. Several Interlocutory Applications (IAs) were filed during the CIRP, including those related to the replacement of the Resolution Professional (RP), extension of the CIRP timeline, and challenges to the resolution plan. The Committee of Creditors (CoC) adopted a 'Swiss Challenge' method for the approval of the resolution plan, which was challenged by some Prospective Resolution Applicants (PRAs). The resolution plan submitted by Truflair Buildwell LLP was ultimately approved by

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## Facts

M/s Maha Associated Hotels Private Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated by M/s UVA Engineers Private Limited, an operational creditor. The CIRP commenced on 20.09.2018. Mr. Brij Kishore Sharma was initially appointed as the Insolvency Resolution Professional (IRP), later replaced by Mr. Naresh Kumar Munjal, and subsequently by Mr. Tara Chand Meenia. The CoC directed the applicant to seek exclusion and extension of the CIRP, which was rejected by the Adjudicating Authority and challenged before NCLAT. Form-G was published on 01.02.2024, inviting Expressions of Interest (EoI). 24 EoIs were received. The CoC adopted the Swiss Challenge method for resolution plan approval. Several IAs were filed, including challenges to the eligibility

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## Issues and analysis

### Issue 1: Whether the adoption of the Swiss Challenge method by the CoC was valid and in accordance with the …

**Ratio:** The CoC has the discretion to adopt a challenge mechanism, as provided in Clause 10(i) of

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**Reasoning:** The Adjudicating Authority noted that the agenda for the adoption of the Swiss Challenge

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**Interpretation:** The interpretation is that the CoC has the authority to decide on the method

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**Application:** In this case, the CoC's decision to adopt the Swiss Challenge method was deemed

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** TARA CHAND…
- **Respondents:** M/s Maha Associate…

## Timeline

- **2018-09-20 — CIRP Init…**: Adjudicating Authority admitted the application for initiation of Corporate Insolvency…
- **2018-09-20 — Appointment…**: Mr. Brij Kishore Sharma was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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