NCLT initiates insolvency proceedings against Gstaad Hotels over Rs 666 crore default

The Mumbai Bench of the National Company Law Tribunal (NCLT) has delivered an order initiating the Corporate Insolvency Resolution Process (CIRP) against Gstaad Hotels Private Limited. The ruling, made on July 8, 2025, by Justice Virendrasingh G Bisht (Retd.), Member (Judicial), and Prabhat Kumar, Member (Technical), stems from a significant financial default.

The insolvency petition, CP (IB) No. 291 of 2023, was filed on March 9, 2023, by Omkara Asset Reconstruction Private Limited, the Financial Creditor. The petitioner claimed a total defaulted amount of Rs 666 croreas on February 27, 2023.

Omkara Asset Reconstruction Private Limited acquired the rights to these outstanding amounts from Piramal Capital and Housing Finance Limited (PCHFL) and PHL Fininvest Private Limited (now Piramal Enterprises Limited) through a Deed of Assignment dated December 27, 2022.

This is not the first time Gstaad Hotels Private Limited has faced such proceedings. The Tribunal had initially admitted the Corporate Debtor into CIRP on January 9, 2024. However, this order was challenged by Deepak Raheja, a shareholder of Gstaad Hotels, before the National Company Law Appellate Tribunal (NCLAT). The NCLAT, via a common order dated January 8, 2025, set aside the earlier admission order and remanded the matter back to the NCLT for fresh consideration after hearing all parties.

The NCLAT’s remand highlighted several points for the NCLT to consider afresh, including the validity of the assignment agreement, the issue of res-judicata concerning previous applications, and the corporate debtor’s contention that it was a solvent company with profitable operations (JW Marriott Hotel and Crown Plaza Hotel). The NCLAT also directed the Adjudicating Authority to review the Cash Management Agreement (CMA) clauses, the utilization of Debt Service Reserve Amount (DSRA), and the application of Emergency Credit Line Guarantee Scheme (ECLGS) funds.

The current order from the NCLT Mumbai Bench indicates that after re-hearing arguments and considering additional pleadings, the Tribunal found that a financial debt exceeding the prescribed threshold exists and is in default. The petition was deemed complete in all respects, leading to the admission of the CIRP against Gstaad Hotels Private Limited.

The order signifies the commencement of the corporate insolvency resolution process, during which the management of Gstaad Hotels Private Limited will vest in an Interim Resolution Professional (IRP) as per Section 17 of the IBC. The Financial Creditor is directed to deposit ₹3,00,000 with the IRP to cover initial expenses.

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