NCLAT Upholds NCLT's Approval for Golden Jubilee Hotels Sale

The National Company Law Appellate Tribunal (NCLAT) has dismissed EIH Ltd's challenge against an NCLT order approving the sale of Golden Jubilee Hotels. The tribunal reinforced the commercial authority of the CoC, ruling EIH ineligible under Section 29A of the IBC to be part of the resolution plan.

The National Company Law Appellate Tribunal (NCLAT) has dismissed the petition filed by EIH Ltd, a leading hospitality brand, against a decision by the National Company Law Tribunal (NCLT) supporting the sale of Hyderabad's Golden Jubilee Hotels.

The appellate tribunal confirmed the previous choice by the NCLT, favoring the bid from a Singapore-based firm, and emphasized that the business decision taken by the Committee of Creditors (CoC) is not open to challenge or scrutiny.

EIH, which holds a 16% stake and managed the hotel, argued against being considered a promoter and therefore ineligible under the Insolvency & Bankruptcy Code's Section 29A. However, NCLAT asserted that EIH's role as the hotel's original promoter subjected it to the restrictions of Section 29A.

(With inputs from agencies.)