# Approval of Resolution Plan - Sarga Hotel Private Limited

> NCLT judgment dated 2024-01-04. Citation: TCN-2024-NCLT-03324. The case pertains to an application filed under section 30(6) and section 31(1) of the…

- **Court:** NCLT
- **Order date:** 4 Jan 2024
- **Citation:** TCN-2024-NCLT-03324
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/approval-of-resolution-plan-sarga-hotel-private-limited-37cee344

## Summary

### Background

The case pertains to an application filed under section 30(6) and section 31(1) of the Insolvency & Bankruptcy Code, 2016 read with regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 for approval of a Resolution Plan for Sarga Hotel Private Limited. The Corporate Debtor was admitted into CIRP vide order dated 11.02.2022, and Mr. Avishek Gupta was appointed as the IRP. Public announcements were made to invite claims from creditors. Shriram Multicom Private Limited's resolution plan was approved by the CoC with 100% voting shares. The Applicant issued a Letter of Intent to the Successful Resolution Applicant on 31.05.2023 and received a Performance Bank Guarantee dated 27.10.2022.

## Facts

Sarga Hotel Private Limited underwent Corporate Insolvency Resolution Process (CIRP). Yes Bank Limited is the Financial Creditor. Avishek Gupta was appointed as the Resolution Professional. Shriram Multicom Private Limited submitted a Resolution Plan that was approved by the Committee of Creditors (CoC) with 100% voting shares. The Resolution Plan includes a total plan value of Rs. 30,099.01 Lakhs for the Corporate Debtor. The Resolution Professional filed an application for approval of the Resolution Plan. The CIRP was initiated on 11.02.2022. The applicant issued Letter of Intent to the Successful Resolution Applicant on 31.05.2023 and received a Performance Bank Guarantee dated 27.10.2022 for an amount of Rs. 25,00,00,000/-. The land admeasuring 3.5 acres is built

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## Issues and analysis

### Issue 1: Whether the Resolution Plan submitted by Shriram Multicom Private Limited should be approved under …

**Ratio:** Section 31(1) of the IBC states that if the Adjudicating Authority is satisfied that the

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**Reasoning:** The Adjudicating Authority considered the documents on record and the submissions made by

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**Interpretation:** Section 31(1) mandates the Adjudicating Authority to approve a resolution plan

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**Application:** In this case, the Adjudicating Authority found that the Resolution Plan

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## Parties

- **Judges:** Smt Bidisha…; D. Ar…
- **Respondents:** Sarga Hotel…

## Timeline

- **2022-02-11 — CIRP Init…**: The Corporate Debtor, Sarga Hotel…
- **2022-02-14 — Public Annou…**: Public announcement was made to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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