Case Details

Case Name: Company Appeal (AT) (Insolvency) No.777 of 2026 (Tru Prime Pvt. Ltd. vs. Navneet Gupta, RP of Majestic Hotels Ltd. & Ors.)

Court: National Company Law Appellate Tribunal, Principal Bench, New Delhi

Appeal Against: Order dated 17.03.2026 passed by NCLT Chandigarh Bench (Court-II) in IA(IBC)/2486(CH)/2024 in CP(IB)No.180/Chd/Pb/2022

Date of Judgment: 29th May, 2026

Presiding Officers: Justice Ashok Bhushan (Chairperson), Barun Mitra (Member Technical)

Period of Dispute: Relates to possession issues arising after CIRP commencement on 03.07.2024

Parties Involved

Appellant: Tru Prime Pvt. Ltd.

Respondents:

  • Navneet Gupta, Resolution Professional of Majestic Hotels Ltd. (Respondent No.1)
  • Committee of Creditors (CoC)
  • Other occupants including suspended directors and their associates

Corporate Debtor: Majestic Hotels Ltd. (running Hotel Majestic Park Plaza, Ludhiana)

Financial Creditor: Tourism Finance Corporation of India (later assigned to UV Asset Reconstruction Company Ltd.)

Key Individuals:

  • Jasbir Singh Khangura (Suspended Director of Corporate Debtor)
  • Amandeep Khangura (Director of Tru Prime Pvt. Ltd. and key managerial personnel)
  • Kewal Krishan Sharma (Suspended Director of Corporate Debtor)

Issues / Allegations / Violations

The Resolution Professional filed an application seeking vacation of premises illegally occupied by various parties including the Appellant. The specific allegations against Tru Prime Pvt. Ltd. were:

  • Illegal occupation of salon at 2nd floor and 12-13 shops at 3rd floor of the hotel
  • Illegal occupation of five rooms (1802-1806) at 8th floor by Amandeep Khangura
  • Claim of occupancy rights based on alleged Profit Sharing Agreements dated 17.06.2019 and 13.03.2020
  • The RP alleged these agreements were sham documents not reflected in corporate debtor's records
  • No profit share payments were ever made to corporate debtor as per these agreements
  • The Appellant claimed occupation of 8th floor rooms in lieu of outstanding dues for supply of milk products
  • The RP alleged invoices for 7000 liters of ghee supplied between January-June 2024 were fabricated and disproportionate to hotel's normal consumption of 40-50 liters per month

Findings & Observations

The NCLAT made several key findings:

  • The Profit Sharing Agreements were unregistered, inadequately stamped, and could not create any occupancy rights in immovable property
  • The agreements were not part of corporate debtor's records and surfaced only in reply to the eviction application
  • No consideration was ever received by corporate debtor under these agreements
  • The Appellant is a related party to corporate debtor through common directors and shareholding patterns
  • Mr. Kewal Krishan Sharma was common director of both companies between 30.09.2012 and 27.05.2018
  • Mrs. Amandeep Khangura was co-director with suspended director in another company (Caring XL Consultants Pvt. Ltd.)
  • The alleged ghee supply invoices showed serious mismatches between gate outward challans and tax invoice receipts
  • All invoices were entered through general entries in seriatim, inconsistent with normal business practices
  • The Appellant failed to prove any legitimate right to occupy the premises after CIRP commencement

Penalties / Settlements / Directions

The NCLAT upheld the NCLT order directing:

  • Immediate vacation of salon at 2nd floor
  • Immediate vacation of 12-13 shops at 3rd floor
  • Immediate vacation of five rooms (1802-1806) at 8th floor
  • Handover of peaceful possession to the Resolution Professional
  • No financial penalties were imposed as the matter concerned possession rights only

Corrective Actions & Future Obligations

  • The Resolution Professional is authorized to take complete possession of all hotel assets
  • The corporate debtor's assets must be secured for the insolvency resolution process
  • Any claims for outstanding dues must be filed through proper CIRP claim process
  • No future occupancy rights can be claimed without proper registered agreements

Final Ruling & Enforcement

The NCLAT dismissed the appeal with the following ruling:

  • The Appeal lacked merit and was dismissed in its entirety
  • No order as to costs was passed
  • The impugned order dated 17.03.2026 of NCLT Chandigarh was upheld
  • The eviction directions became immediately enforceable
  • The judgment reinforces the RP's authority to take possession of corporate debtor's assets from unauthorized occupants during CIRP