# In the matter of Tulip Star Hotels Limited

> NCLT judgment dated 2025-03-21. Citation: TCN-2025-NCLT-00332. The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 21 Mar 2025
- **Citation:** TCN-2025-NCLT-00332
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/tulip-star-hotels-limited-196b20b6

## Summary

### Background

The case involves an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by J.C. Flowers Asset Reconstruction Private Limited (JC Flowers ARC), the Financial Creditor (FC), against Tulip Star Hotels Limited, the Corporate Debtor (CD), for initiating the Corporate Insolvency Resolution Process (CIRP). The original lender was Yes Bank, who assigned the debt to JC Flowers ARC. The application was initially filed by Yes Bank and later transferred from NCLT Delhi to NCLT Mumbai. The CD acted as a corporate guarantor for loans sanctioned to Cox & Kings Limited and Ezeego One Travel & Tours Limited, the Principal Borrowers. CIRP had already been initiated against the Principal Borrowers.

## Facts

Yes Bank, the original lender, sanctioned credit facilities to Cox & Kings Limited and Ezeego One Travel & Tours Limited (Principal Borrowers), amounting to Rs. 1015 Crore. Tulip Star Hotels Limited (CD) acted as the corporate guarantor for these loans. The total amount of default alleged is Rs. 1028,68,87,326.65 as on 22.10.2019. The CD executed irrevocable and unconditional corporate guarantees vide Deed of Guarantee dated 10.07.2019 and 14.05.2019. Upon default in repayment, the original lender invoked the guarantee against the CD vide Guarantee Invocation letter dated 26.08.2019 and 20.11.2019. The debt was assigned to J.C. Flowers Asset Reconstruction Company Private Limited (JC Flowers ARC) on 16.12.2022. The CD contended that the Deed of Guarantee was

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## Issues and analysis

### Issue 1: Whether there is a corporate guarantee …

**Ratio:** A deed of guarantee, when properly executed and stamped, creates a binding obligation on

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**Reasoning:** The NCLT examined the Deed of Guarantee dated 10.07.2019 and found that the CD had

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**Interpretation:** The court interpreted the clauses of the Deed of Guarantee to determine whether

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**Application:** The court applied the ratio to the facts by examining the Deed of Guarantee and

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Respondents:** Tulip Star Hotels…

## Timeline

- **2017-08-29 — Power of At…**: Yes Bank authorized Mr.…
- **2019-02-27 — Statutory Order S.O.…**: Ministry of Corporate Affairs notified persons who may initiate CIRP against corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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