# In the matter of Hotel Horizon Private Limited

> NCLT judgment dated 2026-01-12. Citation: TCN-2026-NCLT-00063. The Interlocutory Application No. 1123 of 2025 in CP (IB) No. 1241 of 2022 was filed by Sagar…

- **Court:** NCLT
- **Order date:** 12 Jan 2026
- **Citation:** TCN-2026-NCLT-00063
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/hotel-horizon-private-limited-9aa029cf

## Summary

### Background

The Interlocutory Application No. 1123 of 2025 in CP (IB) No. 1241 of 2022 was filed by Sagar Sharma & Anr., Suspended Director/Promoter of Horizon Private Limited, challenging the decision of the RP rejecting their Expression of Interest (EOI). The RP rejected the EOI because the Applicants did not meet the net worth criteria approved by the CoC.

## Facts

Sagar Sharma & Anr., Suspended Director/Promoter of Horizon Private Limited, filed an Interlocutory Application challenging the rejection of their EOI.

The RP rejected the EOI because the Applicants did not meet the net worth criteria approved by the CoC.

The Applicants claimed exemption from net worth requirements as the Corporate Debtor is an MSME.

The RP argued that the MSME exemption only applies to certain clauses of Section 29A and does not dispense with compliance of eligibility criteria fixed by the CoC.

The Applicants were non-cooperative in the CIRP process and failed to hand over documents and assets of the Corporate Debtor.

The CoC is vested with the power to decide the minimum eligibility criterion.

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## Issues and analysis

### Issue 1: Whether the Applicants, being promoters of an MSME Corporate Debtor, are entitled to exemption from …

**Ratio:** Section 240A of the IBC provides for certain exemptions to MSMEs, but these exemptions

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**Reasoning:** The NCLT reasoned that the CoC is vested with the power to decide the minimum eligibility

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**Interpretation:** The MSME exemption under Section 240A is not a blanket exemption and does not

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**Application:** The NCLT applied this interpretation to the facts of the case and held that the

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## Parties

- **Judges:** Prabhat…; Sushil Mahadeorao…
- **Appellants:** Sagar S…
- **Respondents:** Hotel Horizon…; Pravin R. N…
- **Other parties:** Asset Care &…
- **Advocates:** Askhay P…; Akash Ag…; +7 more

## Timeline

- **2022-XX-XX — C.P. NO. (IB) 1241 (MB)…**: C.P. NO. (IB) 1241 (MB)…
- **2024-11-19 — CIRP Commen…**: CIRP commenced in terms of order dated…

## 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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