Tribunal orders starting of James Hotel’s liquidation
Ishrat S Banwait
Tribune News Service
Chandigarh, November 3
On the direction of the Supreme Court, the Chandigarh Bench of the National Company Law Tribunal (NCLT) has ordered commencement of liquidation of James Hotel Limited, Sector 17.
The decision came in the matter of Punjab National Bank, which had originally moved the tribunal under the Insolvency and Bankruptcy Code.
The resolution professional has served a final notice to the promoters of the hotel to vacate the premises. This has been done in pursuance of the SC order which reads, “... it is necessary to evict the appellants (promoters) once the winding up process actually commences”.
The NCLT order, which came on October 17, reads, “The Liquidator shall file his preliminary report within 75 days and regular progress reports as per Rule 15 of the Liquidation Process Regulations-2016 every fortnight thereafter”.
Advocate Vikas Garg said the promoters, by not vacating the hotel premises even after liquidation which means winding up has begun, were defying the apex court’s orders.
However, HS Arora, one of the promoters, said the order was being misconstrued. “Winding up starts once the liquidation is completed and the liquidator is hand in glove with the other party,” he alleged. The other promoter Ajmer Singh Bhullar could not be contacted.
It was stated that the company passed certain resolutions by way of which the share application money was converted into debt and close to Rs 1 crore was withdrawn. The original application under the Insolvency and Bankruptcy Code had added that even after the resolution process commenced, the duo continued to live in the hotel for free.
However, the promoters moved the High Court and were granted a stay on the final order while the Supreme Court had ordered a stay on insolvency proceedings.
Timeline
August 2014: Punjab National Bank issues notice for default of loan to James Hotel
August 26, 2016: Banks seal James Hotel after high drama
April 27, 2017: Application filed under Section 7 of Insolvency and Bankruptcy Code against James Hotel
December 21, 2017: HC stays final order in insolvency case
August 2018: National Company Law Tribunal (NCLT) orders eviction of promoters from the hotel premises
September 25: Supreme Court vacates stay, allows NCLT to commence liquidation
October 17: NCLT orders commencement of liquidation
