NCLT Mumbai Approves ₹730 Crore Resolution Plan for Rajesh Business & Leisure Hotels, Clears Path for Project Revival

April 24, 2026 : The Mumbai Bench-II of the National Company Law Tribunal (NCLT) has approved a ₹730 crore resolution plan for Rajesh Business and Leisure Hotels Private Limited, bringing a significant step forward in reviving a long-stalled hotel project in Mumbai.

The order, dated April 24, 2026, was passed by a Bench comprising Judicial Member Ashish Kalia and Technical Member Sanjiv Dutt on an application filed by the Resolution Professional under Sections 30(6) and 31 of the Insolvency and Bankruptcy Code, 2016.

The approved resolution plan was submitted by a consortium of Rare Asset Reconstruction Limited and Check-Inn Hotels Private Limited and had secured 100% approval from the Committee of Creditors (CoC) during its 14th meeting.

Background of the Insolvency Proceedings

The corporate insolvency resolution process (CIRP) against the company commenced on April 20, 2022, following a petition filed by ICICI Bank. The company had undertaken construction of a hotel project at Kanjur Marg, Mumbai, which remained incomplete due to prolonged financial constraints and cost overruns.

As noted in the tribunal record (pages 11–12), the project initially had an arrangement with Radisson but later shifted to operate under the “Hotel Chedi” brand after termination of the earlier agreement. Despite significant borrowings, including external commercial borrowings, the project failed to reach completion and never became operational.

Resolution Process and Litigation History

The resolution process involved multiple rounds of bidding, evaluation, and a structured challenge mechanism. Ultimately, the consortium of Rare ARC and Check-Inn Hotels emerged as the successful resolution applicant with the highest evaluation score (89.30), significantly ahead of competing bidders.

The resolution plan had earlier faced setbacks when the NCLT rejected it in 2024. However, this decision was overturned by the National Company Law Appellate Tribunal (NCLAT) in September 2025, and the Supreme Court subsequently upheld the appellate ruling in November 2025, restoring the plan for consideration.

Key Financial Terms of the Resolution Plan

The approved plan provides for a total resolution amount of ₹730 crore. As detailed in the tribunal’s findings (pages 13–14), the financial distribution includes:

• ₹461 crore towards settlement of secured financial creditors
• ₹6 crore allocated to operational creditors, including employees and statutory authorities
• ₹12.14 crore earmarked for CIRP costs
• Additional infusion of approximately ₹250 crore for working capital and capital expenditure to complete the project

Notably, unsecured financial creditors—primarily related parties—will not receive any payout under the plan, with their claims deemed extinguished upon approval.

Implementation Framework and Revival Strategy

The tribunal recorded that the plan lays out a clear roadmap for implementation. All payments are to be made within 60 days of approval, and an Implementation and Monitoring Committee (IMC) will be constituted to oversee execution.

The successful resolution applicant has also committed substantial funding to ensure that the project is completed and does not face further delays. The plan includes restructuring of capital, infusion of fresh equity, and reconstitution of the company’s management.

Tribunal’s Observations on Legal Principles

Reiterating settled jurisprudence, the NCLT emphasized that its role in approving a resolution plan is limited to ensuring compliance with Section 30(2) of the Code. It relied on Supreme Court precedents including K. Sashidhar v. Indian Overseas Bank and Committee of Creditors of Essar Steel India Ltd. v. Satish Kumar Gupta to underline the primacy of the CoC’s commercial wisdom.

The tribunal observed that the plan meets all statutory requirements and is not in contravention of Section 29A. It further clarified that upon approval, all claims not forming part of the resolution plan stand extinguished, consistent with established law.

Final Directions

Allowing the application, the NCLT approved the resolution plan under Section 31(1) of the Code. The moratorium imposed under Section 14 was lifted, and the Resolution Professional was directed to hand over control of the company to the successful resolution applicant.

The tribunal also directed that the plan would be binding on all stakeholders, including government authorities, and that implementation must proceed in accordance with the approved framework.

Case Title: ICICI Bank Limited vs. Rajesh Business and Leisure Hotels Private Limited
Case No.: I.A. (I.B.C.) No. 1085/MB/2023 in CP (IB) No. 1171/MB/2021
Coram: Ashish Kalia (Judicial Member), Sanjiv Dutt (Technical Member)