# In the matter of Sahara Hospitality Limited

> NCLT judgment dated 2023-08-25. Citation: TCN-2023-NCLT-01930. The petition C.P. (IB)/15(MB)2021 was initially reserved for order on 2023-05-16, along with…

- **Court:** NCLT
- **Order date:** 25 Aug 2023
- **Citation:** TCN-2023-NCLT-01930
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sahara-hospitality-limited-a16a7b12

## Summary

### Background

The petition C.P. (IB)/15(MB)2021 was initially reserved for order on 2023-05-16, along with C.P.(IB)/906(MB)2021 and C.P.(CAA)/134(MB)2022, the latter being a petition seeking approval of a scheme of arrangement with secured creditors. Subsequently, C.P.(IB)/906(MB)2021 was withdrawn by the petitioner on 2023-07-31, and C.P.(CAA)/134(MB)2022 was de-reserved for fresh consideration following the withdrawal of an objection filed by IDBI. The bench referred a question of law to be considered by a special bench constituted by the Hon'ble President in the case of Supreme Infrastructure Limited.

## Facts

The petition C.P. (IB)/15(MB)2021 was initially reserved for order on 2023-05-16. Another petition, C.P.(IB)/906(MB)2021, was later withdrawn by the petitioner on 2023-07-31. C.P.(CAA)/134(MB)2022, a petition seeking approval of a scheme of arrangement with secured creditors, was de-reserved for fresh consideration after IDBI withdrew its objection. The court then referred a question of law concerning the precedence of a scheme of arrangement under sections 230-232 of the Companies Act over an application under section 7 of the IBC to a special bench. The case involves Sahara Hospitality Limited. The order sheet was from a hearing held on 2023-08-25. The petition C.P. (IB)/15(MB)2021 is de-reserved.

## Issues and analysis

### Issue 1: Whether a scheme of arrangement u/s 230-232 with a specific class shall have precedence over an …

**Ratio:** The ratio is based on the interpretation and application of the Companies Act's

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**Reasoning:** The court's reasoning is that the question of precedence between a scheme of arrangement

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**Interpretation:** The interpretation involves understanding the scope and purpose of both the

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**Application:** The application of the ratio and reasoning to the specific facts involves

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## Parties

- **Judges:** Prabhat…; KISHORE VEMULAPALL…
- **Respondents:** Sahara Hospitality…

## Timeline

- **2023-05-16 — Petition Reserved for…**: C.P. (IB)/15(MB)2021 was reserved for…
- **2023-07-31 — Petition Wi…**: C.P.(IB)/906(MB)2021 was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 230 — Delegation](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-230)

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