The National Company Law Appellate Tribunal (NCLAT) has upheld the eviction of Tru Prime Pvt. Ltd. from portions of a hotel owned by the corporate debtor and held that unregistered profit-sharing agreements cannot confer any occupancy rights over immovable property during the Corporate Insolvency Resolution Process (CIRP).
The dispute arose after the Resolution Professional (RP) of Majestic Hotels Ltd., which operates Hotel Majestic Park Plaza in Ludhiana sought possession of various portions of the hotel occupied by former promoters, their associates and related entities following commencement of CIRP on July 3, 2024. Tru Prime Pvt. Ltd. claimed entitlement to continue occupying a salon on the second floor and…