We wish to punctuate an important development in the ongoing bankruptcy proceedings concerning Hotel Horizon Private Limited (HHPL), a prominent real estate and hospitality asset located in Mumbai’s Juhu area.
While the Mumbai Bench of the National Company Law Tribunal approved the resolution plan submitted by a consortium led by Oberoi Realty along with Shree Naman Developers and JM Financial, the implementation of the said plan has been substantially curtailed by the National Company Law Appellate Tribunal (NCLAT).
Background of the Matter
Hotel Horizon, which owns a 1.85 acre land parcel in Mumbai’s iconic Juhu area overlooking the Arabian Sea along with other significant real estate assets, was admitted into bankruptcy proceedings under the provisions of the Insolvency and Bankruptcy Code, 2016 (IBC) due to significant debt arrears.
The NCLT approved a resolution plan involving a proposed payout of Rs.919 crore against arrears of Rs.1,293 crore.
NCLAT’s Intervention stalled implementation of the Resolution Plan
Pursuant to its order dated February 5, 2026, the NCLAT has clarified that “no equity” shall be created in favor of the Successful Resolution Applicant (SRA). The Appellate Bench further directed that no unrecoverable rights or endless benefits shall be conferred upon the Successful Resolution Applicant pending adjudication of the challenge before it.
In effect, this means
- No equity creation in favor of the Successful Resolution Applicant
- No distribution of finances under the approved resolution plan
- No implementation resulting in irreversible consequences.
- No action to be taken that may prejudice the rights of Hotel Horizon and its stakeholders including the Suspended Directors
Although the resolution plan stands approved by the NCLT, its implementation is presently stalled in substance as every and any action by the creditors including the Successful Resolution Applicant will be subject to final hearing of the Appeals filed by the Suspended Directors of Hotel Horizon.
Role of MAAK Legal
In this matter, the Suspended Directors of Hotel Horizon are being represented by MAAK Legal under the leadership of its author, Akash Agarwal.
The firm has been actively advising and representing stakeholders in proceedings under the Insolvency and Bankruptcy Code, particularly in appellate matters and in safeguarding the rights of corporate debtors. This development highlights the importance of Corporate Debtor’s protection within the insolvency framework to prevent irreversible harm pending final adjudication.
Current Status
The matter is presently under consideration before the Appellate Tribunal. While the resolution plan received approval by the NCLT, the Appellate Bench has directed that no substantial implementation of the plan, or creation of irreversible rights, shall take place until the final adjudication.
This case reflects the layered checks and balances built into the IBC framework, ensuring that resolution processes are conducted in a manner that safeguards stakeholders’ rights and upholds procedural fairness by protecting the sanctity of Insolvency.
MAAK Legal remains committed to representing its clients in complex insolvency and restructuring matters, with a focus on strategic advocacy and the protection of legal rights at every stage of the process.
Reference:
https://economictimes.indiatimes.com/industry/services/property-/-cstruction/nclt-clears-hotel-horizon-resolution-nclat-bars-equity-creation-for-now/articleshow/128125178.cms