NCLT Approves ₹1,611 Crore Shree Naman Resolution Plan for Gstaad Hotels; Value Tops ₹1,028 Crore Average Liquidation Benchmark
The National Company Law Tribunal, Mumbai Bench-I has approved the resolution plan submitted by Shree Naman Developers Private Limited for Gstaad Hotels Private Limited, the company that owns the JW Marriott Bengaluru hotel. The order was pronounced on September 3, 2026 in IA (IBC) (PLAN) No. 42 of 2026 in CP (IB) 291 of 2023.
The approved plan provides total resolution consideration of ₹1,611 crore. The tribunal recorded that this amount substantially exceeds the average liquidation value of ₹1,028.33 crore determined by two registered valuers, making the order a notable value-recovery outcome under the Insolvency and Bankruptcy Code.
Resolution plan and creditor approval
The application was filed by resolution professional Jayesh Sanghrajka under Section 30(6) read with Section 31(1) of the IBC and Regulation 39(4) of the CIRP Regulations. The plan submitted by Shree Naman Developers is dated March 12, 2026, with a clarification dated May 7, 2026.
The order records that 13 resolution plans had been received after the expression-of-interest and request-for-resolution-plan process. The compliant plans were placed before the Committee of Creditors in its 16th meeting held on May 8, 2026. E-voting was conducted from May 10 to May 11, and the Shree Naman plan was approved with 98.96% of the voting share. A Letter of Intent was issued on May 11.
The successful resolution applicant subsequently furnished a performance bank guarantee of ₹161.10 crore, equivalent to 10% of the resolution-plan value, through HDFC Bank.
₹1,611 crore consideration versus liquidation value
The tribunal noted that the plan provides for an upfront aggregate payment of ₹1,611 crore toward admitted debts and contingent debts, if payable, in accordance with the plan. The order identifies two liquidation valuations: ₹1,047.65 crore by RNC Valuecon LLP and ₹1,009.01 crore by KKCA Valuers LLP. Their average is ₹1,028.33 crore.
Against that benchmark, the ₹1,611 crore resolution value is roughly ₹582.67 crore higher than the average liquidation value. The tribunal specifically referred to this differential while concluding that the plan maximises value for stakeholders.
Operational creditors and other stakeholders
The plan provides for payment of 100% of admitted operational-creditor claims, with those payments to be made after insolvency-resolution costs and in priority to payments proposed for financial creditors. Dissenting financial creditors are to receive at least the amount payable to them under the Section 53 liquidation waterfall, with the required priority under the Code.
The plan also provides for an initial equity subscription of ₹1 crore through issuance of 10 lakh equity shares of ₹10 each to the implementing entity. Existing issued, subscribed and paid-up equity share capital, other than newly issued shares under the plan, is to be extinguished without consideration as part of the capital restructuring.
Going-concern and redevelopment strategy
Gstaad Hotels is to continue as a going concern. The approved plan contemplates redevelopment and refurbishment of the hotel premises into a high-end mixed-use property covering luxury hospitality, residential and retail or commercial uses, including fine dining and premium office space.
The resolution applicant also proposes to strengthen management and operations through appointment of turnaround experts and senior personnel, including roles such as chief executive, chief operating and chief financial officers. Additional capital expenditure and working capital may be infused without recourse to the corporate debtor's existing assets or an obligation on CoC members.
How the insolvency process reached this stage
Gstaad Hotels had first been admitted into CIRP on January 9, 2024. The NCLAT later set aside that admission order on January 8, 2025 and remanded the matter. NCLT then admitted the Section 7 petition afresh on July 8, 2025 and reappointed Jayesh Sanghrajka as interim resolution professional.
A public announcement followed on July 10, 2025, and the CoC was constituted on July 30. Omkara Assets Reconstruction was the principal secured financial creditor with a 95.76% voting share, followed by Global Hospitality Licensing at 3.20%, Kanazawa Holdings at 0.91% and Ahuja Finance Company at 0.13%.
The process drew significant market interest. The resolution professional received 43 expressions of interest by the extended September 25, 2025 deadline, 40 parties were included in the final eligible list, and 13 resolution plans were ultimately received.
Tribunal's final directions
The NCLT held that the plan satisfied Section 30(2) of the Code and Regulations 37, 38, 38(1A) and 39(4), and that it was not hit by Section 29A. The tribunal approved the plan with effect from the date of the order and dismissed the application objecting to approval.
The order makes the plan binding on the corporate debtor, its employees, members, creditors, governments, local authorities, guarantors and other stakeholders covered by Section 31. It also clarifies that statutory obligations are not automatically waived and that necessary approvals must still be obtained under applicable law. The Section 14 moratorium ceased from the approval date, while the resolution professional was directed to supervise implementation and periodically report status to the tribunal.
Practical takeaway: advisers should now shift from bid-stage analysis to implementation. Key areas to monitor include the updated Form H and financial allocation, statutory approvals, payment sequencing, treatment of admitted claims, capital restructuring and the quarterly implementation reporting expected by the tribunal.
Official source: View the official source document
Key takeaway
NCLT Mumbai has approved Shree Naman Developers' ₹1,611 crore resolution plan for Gstaad Hotels, with the tribunal noting that the consideration substantially exceeds the ₹1,028.33 crore average liquidation value.
