# In the matter of Asian Hotels (West) Ltd.

> NCLT judgment dated 2024-01-29. Citation: TCN-2024-NCLT-02866. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC),…

- **Court:** NCLT
- **Order date:** 29 Jan 2024
- **Citation:** TCN-2024-NCLT-02866
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/asian-hotels-west-ltd-2291f893

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The Corporate Insolvency Resolution Process (CIRP) was initiated, but the Hon'ble NCLAT subsequently set aside the orders of the NCLT and closed the CIRP after the entire amount of Rs. 371.00 crores was deposited. Several Interlocutory Applications (IAs) were filed in connection with the CIRP.

## Facts

JM Financial Asset Reconstruction Company Limited, acting as trustee of Hotel II may, 2022 Trust, filed an application under Section 7 of the IBC, 2016 against Asian Hotels (West) Ltd. The NCLT initially allowed the application, initiating the CIRP. However, the Hon'ble NCLAT later set aside the NCLT's order after Asian Hotels (West) Ltd deposited Rs. 371.00 crores. Consequently, the CIRP was closed. Several IAs were filed during the CIRP, including one by the Employee Provided Fund Organization under Section 60(5) of IBC. The NCLAT order dated 09.01.2024 set aside the orders of the Tribunal dated 16.09.2022.

## Issues and analysis

### Issue 1: Whether the pending applications before the NCLT become infructuous upon the closure of the CIRP by …

**Ratio:** When the basis for initiating CIRP is removed by a higher appellate authority, any

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**Reasoning:** The court reasoned that the NCLAT's order closing the CIRP effectively revived the

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**Interpretation:** The interpretation is that the continuation of CIRP-related proceedings is

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**Application:** Since the NCLAT closed the CIRP, all pending IAs, including IA/200/ND/2023,

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## Parties

- **Judges:** MANNI SANKARIAH…; Sanjeev R…
- **Appellants:** J. M. Financial…
- **Respondents:** Asian Hotels…

## Timeline

- **2022-09-16 — NCLT Ord…**: NCLT allowed the Section 7…
- **2023-10-17 — NCLAT Or…**: NCLAT ordered the…

## 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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