# In the matter of Neesa Leisure Limited

> NCLT judgment dated 2024-03-04. Citation: TCN-2024-NCLT-02243. The case involves an application filed by the Resolution Professional (RP) of Neesa Leisure…

- **Court:** NCLT
- **Order date:** 4 Mar 2024
- **Citation:** TCN-2024-NCLT-02243
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/neesa-leisure-limited-06f84a12

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Neesa Leisure Limited under Section 31 read with Section 30(6) of the Insolvency and Bankruptcy Code (IBC), 2016, seeking approval of a resolution plan. The Corporate Debtor (Neesa Leisure Limited) was admitted into Corporate Insolvency Resolution Process (CIRP) under Section 7 of the IBC, 2016, following an application by Asset Reconstruction Company (India) Limited. The RP received multiple resolution plans, and the Committee of Creditors (CoC) approved a plan submitted by Express Resorts and Hotels Ltd with a majority of 67.85%. However, various objections were raised by the suspended management, dissenting creditors, and other stakeholders regarding the valuation of assets, the

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## Facts

Neesa Leisure Limited was admitted into CIRP under Section 7 of IBC 2016, based on an application by Asset Reconstruction Company (India) Ltd on April 26, 2019. Mr. R P Chaudhry was appointed as the Interim Resolution Professional (IRP). The first CoC meeting was held on May 29, 2019. The IRP filed for an extension and exclusion application under sec 12(3) and Sec 60(5) of IBC. The High Court of Gujarat stayed the CoC meetings from June 19, 2019, to Oct 9, 2019. The RP received 8 expressions of interest from prospective resolution applicants. The RP issued the Information Memorandum on March 4, 2020, and requested submission of resolution plans by March 12, 2020. The last date for submission of the resolution plan with EMD was April 17, 2020. The RP received 4 plans.

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## Issues and analysis

### Issue 1: Whether the Resolution Plan approved by the Committee of Creditors (CoC) complies with the …

**Ratio:** Section 31(1) of the IBC stipulates that a resolution plan must comply with the

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**Reasoning:** The NCLT found that the Resolution Plan lacked a due and transparent process, failed to

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**Interpretation:** Section 31(1) mandates strict adherence to the IBC and its regulations. The

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**Application:** In this case, the NCLT determined that the Resolution Plan did not meet the

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** Amit…
- **Respondents:** Neesa Leisure…; Member of COC of…
- **Advocates:** Pratik Th…; Aditi S…; +10 more

## Timeline

- **2019-04-26 — CIRP Init…**: Corporate Debtor admitted to CIRP under Section 7 of IBC 2016 based on application by…
- **2019-05-29 — First CoC M…**: The first meeting of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 31 — Approval of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-31)

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