# In the matter of Appu Hotels Limited

> NCLT judgment dated 2023-12-20. Citation: TCN-2023-NCLT-00120. The case involves multiple applications related to the Corporate Insolvency Resolution Process…

- **Court:** NCLT
- **Order date:** 20 Dec 2023
- **Citation:** TCN-2023-NCLT-00120
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/appu-hotels-limited-a0ad78bb

## Summary

### Background

The case involves multiple applications related to the Corporate Insolvency Resolution Process (CIRP) of Appu Hotels Limited. The CIRP was initiated following an application by Tourism Finance Corporation of India Limited under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. Several intervention applications were filed, primarily concerning the approval of a settlement proposal under Section 12A of the IBC. The Resolution Professional (RP) filed an application for withdrawal of the CIRP based on the settlement proposal approved by the Committee of Creditors (CoC). Prospective Resolution Applicants (PRAs) also filed intervention applications objecting to the withdrawal and seeking consideration of their resolution plans. The Hon'ble Supreme Court had

…

## Facts

Tourism Finance Corporation of India Limited initiated CIRP against Appu Hotels Limited under Section 7 of IBC, 2016. An Interim Resolution Professional (IRP) was appointed, followed by the appointment of Radhakrishnan Dharmarajan as the Resolution Professional (RP). The IRP received three resolution plans, with only one from M.K. Rajagopalan being considered and approved by the CoC with 87.39% voting share. The NCLT approved Rajagopalan's resolution plan on 15.07.2021. However, the NCLAT set aside this approval on 17.02.2022, directing a fresh EoI process. The Supreme Court upheld this decision on 03.05.2023. The promoter, Dr. Palani G Periasamy, made multiple settlement proposals under Section 12A, with the final proposal approved by the CoC with 100% voting share on

…

## Issues and analysis

### Issue 1: Whether the Promoter has the right to give the settlement proposal any number of times during the …

**Ratio:** Section 12A of IBC, 2016 gives the right to the promoters/suspended Directors of the

…

**Reasoning:** The Hon'ble Supreme Court has commented on the pattern followed by the promoter in

…

**Interpretation:** The statute i.e. IBC, 2016, more particularly Section 12A gives the right to

…

**Application:** The Tribunal held that the Promoters can submit the settlement proposal before

…

## Parties

- **Judges:** SANJIV…; Venkataraman…
- **Respondents:** Appu Hotels…; Radhakrishnan…

## Timeline

- **2020-05-05 — CIRP Init…**: CIRP initiated by the…
- **2021-07-15 — Resolution Plan…**: Resolution Plan submitted by Mr. M.K.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 12A — (1) Subject to sub](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-12a)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/appu-hotels-limited-a0ad78bb