https://www.taxtmi.com/caselaws?id=764621 The NCLAT allowed the appeal and set aside the NCLT order admitting the Section 7 petition filed by Omkara Assets Reconstruction Pvt. Ltd. against hotel operators running JW Marriott and Crown Plaza Hotels. The Tribunal found that the Adjudicating Authority erred by not considering the Cash Management Agreement and amounts transferred under it for debt servicing, failing to examine the Debt Service Reserve Account obligations, and incorrectly finding undisputed default when the Corporate Debtor had disputed it. The NCLAT held that the debt assignment was valid, res-judicata did not apply as different facilities were involved, and the hotels were profitable companies. The matter was remanded to NCLT for fresh consideration of default after examining all relevant materials including CMA provisions and DSRA obligations. en-us Wed, 08 Jan 2025 00:00:00 +0530 Tue, 14 Jan 2025 14:51:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764621 The NCLAT allowed the appeal and set aside the NCLT order admitting the Section 7 petition filed by Omkara Assets Reconstruction Pvt. Ltd. against hotel operators running JW Marriott and Crown Plaza Hotels. The Tribunal found that the Adjudicating Authority erred by not considering the Cash Management Agreement and amounts transferred under it for debt servicing, failing to examine the Debt Service Reserve Account obligations, and incorrectly finding undisputed default when the Corporate Debtor had disputed it. The NCLAT held that the debt assignment was valid, res-judicata did not apply as different facilities were involved, and the hotels were profitable companies. The matter was remanded to NCLT for fresh consideration of default after examining all relevant materials including CMA provisions and DSRA obligations. Case-Laws IBC Wed, 08 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764621