SRA cannot be forced to continue any existing agency of the Corporate Debtor – EIH Ltd. Vs. Subodh Kumar Agrawal and Ors. – NCLAT New Delhi

The Resolution Plan envisaged a complete break from all contracts and obligations due towards the existing share- holders and promoters including the appellant EIH Ltd. The SRA has specifically provided in the resolution plan that the existing contracts would be saved to keep the Corporate Debtor as a going concern but the contracts of the appellant were specifically excluded from the contracts intended to be protected. It is for the SRA to choose the operator of the hotel and SRA cannot be forced to continue any existing agency including the existing operator of the Hotel i.e., the Appellant herein. Thus, the plea of appellant that the management and operation of hotel is an arm’s length transaction is not found convincing.

Related Posts:

If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

IBC-Case Laws-NCLAT
Scroll to Top