Bhaskara Pantula Mohan, a member of the judiciary division bench, and Rajesh Sharma, a technician, prohibited the transfer or alienation of the assets of the company and its owners.
The Bank of Baroda NSE has accepted a plea against Genesis Resorts in Bombay, which defaulted on loans of about Rs 230 crores, filed for insolvency resolution by Bank of BarodaNSE of 2,18 percent.
The moratorium shall take effect until the corporate insolvency settlement process is completed or until the bench approves the resolution plan, the court announced on Wednesday in an order.
In order to manage the affairs of the organization and the process of rehabilitation, the tribunal certified Vijay Pitamber Lula as a resolution professional.
Genesis Resorts has a four-star hotel in the north suburb of Mumbai, Vile Parle.
In its appeal to Genesis Resorts, Bank of Baroda claimed that it had given Rs 149 crore credit in 2012. Amid Genesis Resorts ‘ failure to pay back loans, on November 30, 2016 the debt was listed as a non-performing asset. The banking authority has now approached the bankruptcy tribunal to recover dues, which amount to 230 crore.
The development has been confirmed by Nishit Dhruva, management partner for the law firm MDP & Partners, who represents the lender in the case, but refused to disclose details.
Recently, the insolvency resolution mechanism has been applied to several budget hotels. In May, following defaults on the debt of about Rs 150 crore, the Court had accepted V Hotels for insolvency resolution. In March, the National Law Tribunal of the Company in Hyderabad referred Viceroy Hotels to BSE for a resolution on insolvency.
There is a shortage of budget hotels in subways including in Mumbai according to Sujjain Talwar, co-founding partner of ELP law firm and, if the price is correct and the hotel is in a good condition and with sufficient permission, a strong response from potential buyers can be anticipated.