You’ve heard of Barbie’s DreamHouse, but what about Barbie’s dream hotel?
The National Company Law Appellate Tribunal (NCLAT) rejected Rajagopal’s Rs 423-crore plan on the grounds that it was revised after a majority of lenders voted on it, but the revised plan was not put before lenders for a vote. Secondly, the resolution of the applicant was ineligible under Section 29 (A) of the Insolvency and Bankruptcy Code — a rule which bars defaulters from acquiring companies.
The division bench observed that while respecting the commercial wisdom of the Committee of Creditors, the NCLAT could not have approved the plan for these two major reasons.
After NCLAT rejected Rajagopal’s plan, the lenders approved a Rs 592-crore offer from the promoter, Periasamy Palani Gounder, in November