The National Company Law Appellate Tribunal (NCLAT), New Delhi, has upheld the eviction of the promoter family from a five-star hotel owned by the corporate debtor and held that an undisclosed related-party Memorandum of Understanding (MoU) and an arbitral award could not justify continued occupation of the company’s property during the Corporate Insolvency Resolution Process (CIRP).
The dispute arose after the Resolution Professional (RP) sought possession of certain areas of the hotel including the entire ninth floor which remained occupied by the suspended management and their family members despite commencement of CIRP. The RP contended that these premises formed part of the corporate debtor’s assets and were…