HC suspends NCLT Hyderabad order

Earlier, NCLT rejected Resolution Plan of M/s CFM Asset Reconstruction Pvt. Ltd.

The Telangana High Court had passed an interim direction suspending the order of National Company Law Tribunal’s Special Bench of Hyderabad which rejected the Resolution Plan presented by M/s CFM Asset Reconstruction Private Limited.

The Resolution Plan was presented in a matter involving Viceroy Hotels Limited and Union Hotels Private Limited. A Bench of Acting Chief Justice M.S. Ramachandra Rao and Justice T. Vinod Kumar, which passed the interim direction, observed that “it appears that the parties have not been taken into confidence” by the NCLT Bench while rejecting the RP.

The Bench said, “It is settled principle that justice should not only be done but it must be seen to be done”. Prima facie it did not appear so in the present case and hence, the NCLT order was being suspended temporarily, the Bench said in its order.