Air Travel Enterprises India Ltd. v. Union Bank of India

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The Tax Publishers 2023 TaxPub(CL) 710 (NCLAT-Chen) IN THE NATIONAL COMPANY LAW APPELLATE TRIBUNAL, CHENNAI M. VENUGOPAL MEMBER, J. & MS. SHREESHA MERLA, T. M. Air Travel Enterprises India Ltd. v. Union Bank of India No. Comp. App. (AT) (CH) (Ins.) No. 70 of 2023 March 29, 2023 Appellant by : K.S. Ravichandran, Advocate Respondent No.1 by : P.H. Arvindh Pandian, Sr. Advocate for Varun Srinivasan, Advocate. JUDGMENT *Shreesha Merla, T. M.* Aggrieved by the Order dated 25-1-2023, passed by the National Company Law Tribunal, Kochi Bench, Kochi in CP(IBC)/46/KOB/2022, M/s. Air Travel Enterprises India Ltd., a Shareholder of the Corporate Debtor/M/s Green Gateway Leisure Ltd., preferred this Appeal, challenging the Order of Admission, under section 7 of the Insolvency & Bankruptcy Code, 2016 (hereinafter referred to as The Code). 2. The Learned Counsel for the Appellant submitted that the Corporate Debtor, is a Special Purpose Vehicle (SPV), created for the purpose of operation of a Project Act BEKAL. The Appellant, is a promoter of the Resort Project, and holds about 25% of the Share Capital. It is submitted that the Appellants have sufficient experience in Hospitality and Health Sector and that the Project undertaken is viable and feasible only when all the Debts, are cleared and investment is made. The promoters have made huge investment to the tune of Rs. 225 crores, which includes borrowed funds from the three Financial Creditors, out of which, they have settled with the State Bank of India, which is the major Financial Creditor, and also made part payments to the 1st Respondent/Financial Creditor/Union Bank of India. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers 2023 TaxPub(CL) 710 (NCLAT-Chen)

IN THE NATIONAL COMPANY LAW APPELLATE TRIBUNAL, CHENNAI

M. VENUGOPAL MEMBER, J. & MS. SHREESHA MERLA, T. M.

Air Travel Enterprises India Ltd. v. Union Bank of India

No. Comp. App. (AT) (CH) (Ins.) No. 70 of 2023

March 29, 2023

Appellant by : K.S. Ravichandran, Advocate

Respondent No.1 by : P.H. Arvindh Pandian, Sr. Advocate for Varun Srinivasan, Advocate.

JUDGMENT

Shreesha Merla, T. M.

Aggrieved by the Order dated 25-1-2023, passed by the National Company Law Tribunal, Kochi Bench, Kochi in CP(IBC)/46/KOB/2022, M/s. Air Travel Enterprises India Ltd., a Shareholder of the Corporate Debtor/M/s Green Gateway Leisure Ltd., preferred this Appeal, challenging the Order of Admission, under section 7 of the Insolvency & Bankruptcy Code, 2016 (hereinafter referred to as The Code).

2. The Learned Counsel for the Appellant submitted that the Corporate Debtor, is a Special Purpose Vehicle (SPV), created for the purpose of operation of a Project Act BEKAL. The Appellant, is a promoter of the Resort Project, and holds about 25% of the Share Capital. It is submitted that the Appellants have sufficient experience in Hospitality and Health Sector and that the Project undertaken is viable and feasible only when all the Debts, are cleared and investment is made. The promoters have made huge investment to the tune of Rs. 225 crores, which includes borrowed funds from the three Financial Creditors, out of which, they have settled with the State Bank of India, which is the major Financial Creditor, and also made part payments to the 1st Respondent/Financial Creditor/Union Bank of India.