# In the matter of BKR Hotels and Resorts Private Limited

> NCLT judgment dated 2023-08-31. Citation: TCN-2023-NCLT-01817. The case involves an application filed by M.K. Rajagopalan, the successful purchaser, under…

- **Court:** NCLT
- **Order date:** 31 Aug 2023
- **Citation:** TCN-2023-NCLT-01817
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bkr-hotels-and-resorts-private-limited-a68e0152

## Summary

### Background

The case involves an application filed by M.K. Rajagopalan, the successful purchaser, under Section 60(5) of the Insolvency and Bankruptcy Code (IBC), 2016, read with Regulation 32 and 33 and Schedule I Part 2 of the IBBI (Liquidation Process) Regulations, 2016. The Corporate Insolvency Resolution Process (CIRP) for BKR Hotels & Resorts Private Limited was initiated on 14.08.2018, but no resolution plan was received. Consequently, liquidation was ordered on 03.05.2019, and a liquidator was appointed. The respondent, S.R. Shriraam Sheker, was later appointed as the liquidator on 01.12.2022. The erstwhile liquidator attempted six public e-auctions, all of which failed. The respondent then initiated a private sale, leading to M.K. Rajagopalan's offer to purchase the

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## Facts

The Corporate Insolvency Resolution Process (CIRP) for BKR Hotels & Resorts Private Limited was initiated on 14.08.2018 due to its inability to repay its debts. No resolution plan was approved during the CIRP, leading to an order for liquidation on 03.05.2019. Six public e-auctions were conducted by the erstwhile liquidator, but all failed to attract any bidders. The last reserve price was fixed at Rs.68 Crores. The current liquidator, S.R. Shriraam Sheker, then initiated a private sale process. M.K. Rajagopalan expressed interest in purchasing the Corporate Debtor as a going concern and offered Rs.68.04 Crores, which was later increased to Rs.70 Crores. A demand draft for Rs.68.04 Crores was submitted on 21.03.2023. The Stakeholders Committee (SCC) was informed of

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## Issues and analysis

### Issue 1: Whether the sale of the Corporate Debtor as a going concern through private sale under Regulation …

**Ratio:** Regulation 33(2)(c) of the IBBI (Liquidation Process) Regulations, 2016, empowers the

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**Reasoning:** The Liquidator conducted six e-auctions, all of which failed. The Applicant offered

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**Interpretation:** The regulation allows for private sale as an alternative method to realize the

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**Application:** Since the Applicant's offer exceeded the reserve price of the failed auctions,

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## Parties

- **Judges:** Ramalingam…; SAMEER…
- **Appellants:** M.K. Rajag…
- **Respondents:** B.K.R. Hotels and…; S R Shriraam…

## Timeline

- **2018-08-14 — CIRP Init…**: Corporate Insolvency Resolution Process initiated for BKR Hotels & Resorts Private…
- **2019-05-03 — Liquidation…**: Liquidation ordered as no…

## 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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