Indian Bankruptcy Court Allows Withdrawal of Insolvency Plea Against Sahara Hospitality

The bankruptcy court on Thursday allowed a petition to withdraw the insolvency resolution process against Sahara Hospitality, after the company and its operational creditor agreed to settle their dispute, the Economic Times of India reported. Mumbai-based Sahara Hospitality, the owner of Hotel Sahara Star and part of Subrata Roy’s Sahara India Pariwar, was admitted under the corporate insolvency resolution process (CIRP) after operational creditor Delta Electro Mechanical filed a petition claiming a default of over Rs 50 crore by the company. “This bench is of the considered view that since parties have settled the matter as full-and-final … nothing survives in the present company petition,” observed the Mumbai bench of the National Company Law Tribunal, presided by Justice PN Deshmukh. “Hence, the company petition is out of the rigour of the CIRP,” the bench ruled. Read more.