NCLT Admits Insolvency Plea Against Aman Hospitality Over ₹119 Crore Default

The National Company Law Tribunal (NCLT) at Delhi has admitted Bank of India's insolvency plea against Delhi- based Aman Hospitality Private Limited over a default of about Rs 119 crore, excluding its equity, following a plea by Bank of India.

A coram comprising President Justice Ramalingam Sudhakar and Technical Member Ravindra Chaturvedi passed the order on January 12, 2026.

The dispute arises from loans sanctioned for Aman's five-star hotel project in Shahdara, Delhi. Between 2010 and 2011, a banking consortium extended facilities aggregating over Rs 160 crore. Bank of India was one of the lenders.

The account turned irregular and was classified as a non-performing asset in March 2018. Lenders later invoked a strategic debt restructuring plan. As part of the exercise, a portion of the debt was converted into equity, giving lenders a combined 51% shareholding. Bank of India converted Rs 103.32 crore of its exposure.

The restructuring failed. The borrower continued to default on the remaining loan amount. The bank said dues of around Rs 119 crore, excluding the equity portion, remained unpaid as of March 31, 2025.

Aman Hospitality opposed the insolvency plea. It argued that by acquiring a majority stake and participating in the Joint Lenders' Forum, the bank exercised control over the company and could not pursue insolvency as a creditor.

The tribunal rejected the argument. It held that conversion of debt into equity for restructuring does not amount to control over management or financial affairs. Mere shareholding or participation in a lenders' forum does not bar a lender from seeking insolvency.

The tribunal also noted that the company had repeatedly acknowledged its debt over the years. These acknowledgements appeared in its audited balance sheets as well as in several one-time settlement proposals, which the Bench said were sufficient to keep the claim within limitation.

Finding that the default was well above the statutory threshold, the NCLT admitted the case, declared a moratorium on the company's assets, and appointed Anup Kumar as the interim resolution professional.

Case Title: Bank of India v. Aman Hospitality Private Limited

Citation: 2026 LLBiz NCLT(DEL) 51

Case Number: CP (IB) – 276(ND)/2025

For Financial Creditor: Advocate Ashish Verma, Advocate Nikhil Thakur and Advocate Kriti.

For Corporate Debtor: Senior Advocate Sunil Fernandes, Advocate V. Anush Raajan and Advocate Pradyuman Yadav.