Archive · 19 Jul 2026
NCLAT Upholds Sristi Hospitality Sale to Consortium
The National Company Law Appellate Tribunal (NCLAT) has decided to support the sale of Sristi Hospitality to a group that includes Amit Jatia from Hardcastle Restaurants.
The former owners of Sristi Hospitality tried to challenge the sale, saying the property was sold for less than it was worth.
They also accused the group buying the property and the person managing the sale of working together unfairly.
However, the NCLAT said the sale price was decided fairly and that the decision to accept it cannot be changed.
The sale was approved because Sristi Hospitality owed a lot of money and couldn't pay it back.
The NCLAT also said that the committee that approved the sale made the right decision and that the sale followed all the necessary rules.
The NCLAT dismissed appeals against the sale of Sristi Hospitality, upholding the valuation approved by the Committee of Creditors (CoC).
The consortium, including Amit Jatia of Hardcastle Restaurants, proposed an investment of ₹32.41 crore for the property.
Former promoters alleged undervaluation and collusion, claiming previous valuations were higher and that they were denied the opportunity to submit a superior plan.
The NCLAT rejected these allegations, stating that only valuations conducted during the insolvency process are relevant.
The CIRP against Sristi Hospitality was initiated in February 2023 due to an unpaid loan of over ₹28 crore to Saraswat Co-operative Bank.
- Who
- The National Company Law Appellate Tribunal (NCLAT), former promoters of Sristi Hospitality, and a consortium comprising Admas Industries, Subh Ashish Exim Pvt Ltd, and Amit Jatia of Hardcastle Restaurants.
- What
- The NCLAT dismissed appeals against the sale of Sristi Hospitality through insolvency and upheld the valuation approved by the Committee of Creditors (CoC).
- When
- The NCLT approved the resolution plan on July 12, 2024, and the NCLAT's decision was published on July 19, 2026.
- Where
- The property in question is located in Vile Parle, Mumbai.
- Why
- The sale was initiated due to an unpaid loan of over ₹28 crore to Saraswat Co-operative Bank, leading to the corporate insolvency resolution process (CIRP).
Former Promoters
Consortium and NCLAT
Valuation of the Asset
Former Promoters
The former promoters allege that the asset was undervalued during the insolvency process, claiming previous valuations were higher.
Consortium and NCLAT
The NCLAT and consortium argue that the valuation conducted during the insolvency process is relevant and final, as per the Committee of Creditors' approval.
Collusion Allegations
Former Promoters
The former promoters allege collusion between the resolution professional and the consortium, claiming they were denied the opportunity to submit a superior competing plan.
Consortium and NCLAT
The NCLAT rejected these allegations, stating no material irregularity in the exercise of powers by the Resolution Professional was established.
- Date of NCLT Approval
- July 12, 2024
- Investment Amount
- ₹32.41 crore
- Previous Valuations
- Up to ₹76.72 crore (2017 and 2020)
- Initiation of CIRP
- February 2023
- Unpaid Loan Amount
- Over ₹28 crore
- Consortium Members
- Admas Industries, Subh Ashish Exim Pvt Ltd, Amit Jatia of Hardcastle Restaurants