The bankruptcy court allowed a petition to withdraw the insolvency resolution process against Sahara Hospitality, after the company and its operational creditor agreed to settle their dispute.
Mumbai-based Sahara Hospitality, the owner of Hotel Sahara Star and part of Subrata Roy’s Sahara India Pariwar, was admitted under the corporate insolvency resolution process (CIRP) after operational creditor Delta Electro Mechanical filed a petition claiming a default of over Rs 50 crore by the company.
“This bench is of the considered view that since parties have settled the matter as full-and-final … nothing survives in the present company petition,” observed the Mumbai bench of the National Company Law Tribunal, presided by Justice PN Deshmukh. “Hence, the company petition is out of the rigour of the CIRP,” the bench ruled.
Before the passing of the order, counsel Nausher Kohli, appearing for interim resolution professional Mamta Binani, informed the tribunal that both parties had signed a settlement agreement under which Sahara Hospitality had agreed to pay Rs 8 crore in three instalments against all its outstanding dues.
On July 15, the tribunal had allowed Delta Electro Mechanical’s plea to admit Sahara Hospitality, the flagship hotel of Sahara India Pariwar, under the insolvency process after the company failed to repay dues of about Rs 51.77 crore.
The case was originally filed in 2018 by the operational creditor. It was disposed of in April 2019 after the company agreed to settle the dispute for Rs 20 crore, to be paid in 14 instalments. Subsequently, in September 2019, the operational creditor again approached the tribunal after the company failed to meet the agreed terms.
Sahara Hospitality had awarded a work order to Delta Electro Mechanical for the supply, installation, testing and commission of HVAC and electrical systems at the hotel for about Rs 32 crore.
After the hospitality company defaulted on payments, Delta Electro Mechanical demanded Rs 51.77 crore along with interest of over Rs 19 crore.
The Sahara Group had acquired this hotel for an undisclosed amount in 2002, at the time of the disinvestment of Airport Centaur Hotel in Mumbai. The hotel is situated very close to the Mumbai airport in the northern suburb of Vile Parle and has over 350 rooms.
