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The Supreme Court has rejected a review petition filed by MGM Healthcare chairman MK Rajagopalan against its earlier order upholding the verdict of the National Company Law Appellate Tribunal (NCLAT) in a case pertaining to the takeover of Appu Hotels.
In an order, Justice Sajiv Khanna and Justice Vikram Nath said the prayer for oral hearing of the review petitions is rejected. “We have carefully perused the review petitions as also the grounds in support thereof. In our opinion, no case for review of the common judgment and order dated May 3, 2023 is made out. The review petitions are, accordingly, dismissed,” the SC order dated August 17 read.
NCLAT order
In 2020, the National Company Law Tribunal (NCLT) Chennai admitted an insolvency petition against Appu Hotels in a case filed by the Tourism Finance Corporation of India Ltd. The NCLT later approved Rajagopalan’s ₹423-crore resolution bid to take over Appu Hotels, which owns and operates the hospitality brand Le Meridien in Chennai and Coimbatore.
In February 2022, NCLAT set aside the sale approval given by NCLT based on an appeal filed by Appu Hotels promoter Palani G Periasamy. In his petition, Periasamy had then contended that the total value of the assets (which includes two Le Royal Meridien Hotels and vacant land parcels near Chennai airport) came to ₹1,641 crore, four times the value proposed in Rajagopalan’s resolution plan. The NCLAT had also offered Periasamy an opportunity to submit a fresh proposal to corporate creditors.
Accordingly, the Appu Hotels promoters filed an application under Section 12-A of the Insolvency and Bankruptcy Code and deposited ₹420 crore in cash and bank guarantee. Rajagopalan had moved the apex court against the NCLAT order. However, the Supreme Court on May 3 upheld the February 2022 verdict.
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