NCLAT Overturns NCLT Order, Paves Way for JC World Hospitality Promoters

The National Company Law Appellate Tribunal (NCLAT) has overturned the NCLT's decision, declaring JC World Hospitality promoters ineligible under Section 29A of the IBC. Promoters are now permitted to submit their resolution plan, previously approved by the Committee of Creditors, with NCLAT mandating expedited handling by the NCLT.

The National Company Law Appellate Tribunal (NCLAT) has overruled the National Company Law Tribunal (NCLT) decision, restoring the eligibility of JC World Hospitality promoters to submit their resolution plan. The NCLT's earlier ruling had deemed the promoters ineligible under Section 29A of the Insolvency and Bankruptcy Code (IBC). However, NCLAT stated that the NCLT reached this conclusion without thoroughly examining the evidence.

A two-member bench, comprising Chairperson Justice Ashok Bhushan and Member, Technical Barun Mitra, noted that the promoters met the stipulated eligibility criteria, including a net worth requirement of Rs 50 crore. The bench also highlighted that the commercial space buyers had voted unanimously in favor of the promoters' resolution plan, as per Section 25A(3A) of the IBC.

NCLAT has directed the NCLT to conclude the matter within three months, reviving the earlier application filed by the Resolution Professional (RP) of JC World Hospitality and rejecting the competing bid from Amrapali Fincap. The decision marks a significant win for JC World Hospitality, an MSME engaged in real estate development.

(With inputs from agencies.)