NCLAT stays NCLT order approving ₹423 crore bid for Appu Hotels
NCLAT stays NCLT order approving ₹423 crore bid for Appu Hotels
Special Correspondent
CHENNAI: The National Company Law Appellate Tribunal (NCLAT), Chennai has stayed the implementation of order approving MGM Healthcare managing director M.K. Rajagopalan’s ₹423 crore bid to take over Appu Hotels Limited. Appu Hotels owns and operates Le Meridien in Chennai and Coimbatore.
The National Company Law Tribunal (NCLT), Chennai had approved the bid. Against this Periasamy Palani Gounder (Promoter & Erstwhile Director) Appu Hotels Limited moved the NCLAT.
In his petition, he alleged that the whole ‘Resolution Process’ is vitiated by numerous statutory violations of the provisions of Insolvency and Bankruptcy code. The resolution professional Radhakrishnan Dharmarajan and Rajagopalan were named as respondents.
Mr. Periasamy alleged that Rajagopalan was put in a pole position to abdicate with assets worth over Rs.1600 Crores for a paltry sum of Rs.423 Crores.
Mr. Periasamy also said he is ready to pay all the ‘Financial Creditors’, ‘Operational Creditors’ and ‘Unsecured Financial Creditors. He also said he will deposit Rs. 450 crore and he requires two or three days time in this regard.
He argued that NCLT had failed to interfere with the attempt to acquire the assets of Appu Hotels for less than 25% of its actual value, while the ‘Promoters’ are ready and willing to infuse more funds than Rajagopalan and to settle all the Creditors in an expeditious manner.
The respondents argued that NCLT approval was valid.
NCLAT said submissions projected on either side require a detailed rumination and granted respondents two weeks time to file detailed replies against the appeal and stayed the implementation of NCLT order till next date of hearing.
