# In the matter of Sharan Hospitality Private Limited

> NCLT judgment dated 2023-11-22. Citation: TCN-2023-NCLT-00654. The case involves two Interlocutory Applications (IAs). IA 266/2023 was filed by Majestic Auto…

- **Court:** NCLT
- **Order date:** 22 Nov 2023
- **Citation:** TCN-2023-NCLT-00654
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sharan-hospitality-private-limited-9fddf711

## Summary

### Background

The case involves two Interlocutory Applications (IAs). IA 266/2023 was filed by Majestic Auto Limited, the Successful Resolution Applicant (SRA), seeking exclusion of a period from 2021-12-13 until the order date from the 18-month implementation period of the Resolution Plan, due to a stay granted by the Supreme Court. They also sought an extension of the implementation period until 30 days after the final disposal of the matter pending before the Supreme Court and to restrain Respondent No. 1 (Monitoring Committee) and Respondent No. 2 (Axis Bank Limited) from invoking the Performance Bank Guarantee. IA 1290/2023 was filed by Axis Bank Limited, the sole member of the Committee of Creditors, seeking liquidation of the Corporate Debtor, Sharan Hospitality Private

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## Facts

Majestic Auto Limited, the Successful Resolution Applicant (SRA), sought exclusion of time from the Resolution Plan's implementation period due to a stay order by the Supreme Court related to ongoing litigation by Daiichi Sankyo Co. Ltd. Axis Bank Limited, the sole member of the Committee of Creditors, filed an application seeking liquidation of Sharan Hospitality Private Limited, the Corporate Debtor, citing non-implementation of the Resolution Plan due to the same litigation. The Resolution Plan, approved on 2021-04-15, stipulated an 18-month implementation period. Clause 5 of the Basic Assumptions of the Resolution Plan made its implementation conditional on the vacation of the restraint/stay order of the Delhi High Court. The Supreme Court had stayed the Delhi High

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## Issues and analysis

### Issue 1: Whether the delay in implementing the Resolution Plan due to the Supreme Court's stay order …

**Ratio:** The implementation of the Resolution Plan is contingent upon the vacation or modification

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**Reasoning:** The court reasoned that the Resolution Plan itself contemplated the possibility of delays

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**Interpretation:** This interprets the Resolution Plan's clauses regarding implementation

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**Application:** The ratio and reasoning are applied to the specific facts by acknowledging that

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Majestic Auto…
- **Respondents:** Sharan Hospitality…

## Timeline

- **2019-05-08 — CIRP Admi…**: Sharan Hospitality Private Limited admitted into Corporate Insolvency Resolution Process…
- **2021-04-15 — Resolution Plan…**: Resolution Plan submitted by SRA (Majestic…

## 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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