NCLAT Sets Aside Aman Hospitality CIRP After Suspended Director Undertakes To Pay ₹119 Crore Dues

The National Company Law Appellate Tribunal (NCLAT) on Thursday set aside insolvency proceedings against Aman Hospitality Private Limited after the suspended director undertook to pay Bank of India's dues within three days, overturning an NCLT Delhi order admitting the company into the Corporate Insolvency Resolution Process (CIRP).

A bench comprising Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra allowed the appeal filed by suspended director Raj Singh Gehlot after taking on record his undertaking to settle the dues of the financial creditor, Bank of India.

Setting aside the admission order, the tribunal said, “The order dated 12.01.2026 is set aside.”

It further recorded the undertaking of the suspended director to pay the remaining dues to the Bank of India by issuing a fresh payment order in the bank's name within three days.

“The Appellant has undertaken to make payment of Rs. 119,94,00,695 to the Bank of India by preparing a fresh payment order after cancelling the payment order dated 24.12.2025 prepared in the name of Registrar NCLT, which payment order be handed over to the Bank of India within three (03) days from today,” it noted.

The NCLAT clarified that the payment would remain “subject to determination of the total amount of entitlement of the Bank of India” in a pending recovery application. It added that if the bank is ultimately found entitled to a lesser amount, it would be required to refund the excess to the corporate debtor. In view of these directions, the tribunal held that the insolvency petition and all pending applications “stand disposed of.”

The case arose from an order dated January 12, 2026, passed by the NCLT New Delhi, admitting Bank of India's Section 7 petition.

The NCLT had initiated insolvency proceedings over a claimed default of approximately Rs 119 crore relating to loans sanctioned for Aman Hospitality's five-star hotel project in Shahdara, Delhi.

While admitting the plea, the NCLT had rejected the corporate debtor's argument that the bank's conversion of debt into equity acquiring a 51% stake under a Strategic Debt Restructuring scheme barred it from proceeding as a financial creditor.

The tribunal had held that mere shareholding through debt conversion does not amount to “control” over management that would disqualify a lender from initiating insolvency.