M&A

M&A

NCLAT upholds sale of Sristi Hospitality to consortium comprising Amit Jatia of Hardcastle Restauran

NCLAT   Business Line  

The National Company Law Appellate Tribunal (NCLAT) has dismissed appeals filed by the former promoters of Sristi Hospitality, upholding the sale of the company to a consortium comprising Admas Industries, Subh Ashish Exim, and Amit Jatia of Hardcastle Restaurants. The tribunal refused to review the valuation of the firm.Sristi Hospitality operates a property in Vile Parle, Mumbai, which houses various restaurants and commercial facilities. The insolvency process was initiated in February 2023 following a plea by Saraswat Co-operative Bank regarding an unpaid loan exceeding INR 28 Cr. The new owners have proposed an investment of INR 32.41 Cr under the resolution plan approved by the National Company Law Tribunal (NCLT) in July 2024.The former promoters challenged the sale, alleging that the asset was undervalued and that the valuation process was manipulated. The NCLAT rejected these claims, noting that the Committee of Creditors’ (CoC’s) commercial decision is non-justiciable. The tribunal further confirmed that the resolution plan has been fully implemented and complies with all mandatory legal requirements.