The National Company Law Tribunal (NCLT) has ordered the liquidation of Tulip Hotels after the failure to secure a resolution plan within the stipulated timeline during the Corporate Insolvency Resolution Process (CIRP). Initiated on May 16, 2023, based on a plea by Yes Bank, the CIRP was launched due to a default of INR 900 crore. The default arose from corporate guarantees issued by Tulip Hotels for loans amounting to INR 450 crore each, disbursed by Yes Bank to Cox & Kings and EzeeGo One Travel and Tours Ltd. When the borrowers defaulted, Yes Bank invoked the guarantees.
Despite the statutory 180-day timeframe mandated by the Insolvency and Bankruptcy Code (IBC), no bids or resolution plans were submitted for Tulip Hotels. The…
