NCLAT Admits Appeal Against NCLT's Approval of Oberoi Realty Consortium's Hotel Horizon Acquisition; Interim Order Freezes Equity Creation
NCLAT Admits Challenge to Hotel Horizon Resolution Plan
The National Company Law Appellate Tribunal (NCLAT) has admitted an appeal challenging the approval of the resolution plan, which the Mumbai bench of NCLT had previously approved on January 29. The plan was submitted by a consortium comprising Oberoi Realty, Shree Aman Developers, and JM Financial Properties and Holdings.
The ₹919.25 crore acquisition of Hotel Horizon Private Limited (HHPL) by the consortium has hit a legal roadblock. This development introduces significant uncertainty into a high-profile real estate transaction involving a prime sea-facing property in Juhu, Mumbai.
Interim Order Freezes Equity Issuance
The appellate tribunal has passed an interim order preventing the creation of any new equity until a final verdict is reached, with the next hearing scheduled for February 25, 2026. NCLAT specified that any actions taken under the contested order would depend on the appeal's outcome.
Basis of the Appeal
The promoters have raised concerns about the actions of the Resolution Professional, who allegedly ignored an earlier NCLT order from July 17, 2025. This order had reduced the loan amount from Rs 1,612 crore to approximately Rs 643 crore. The appeal alleges that the Resolution Professional ignored a prior NCLT order from July 2025 that had significantly reduced the admitted loan amount for a creditor, which could have affected the plan's evaluation.
About the Asset
Hotel Horizon owns a strategically located land parcel of about 7,500 square meters in Juhu, Mumbai, with a direct sea-facing view, making the asset significant for future development opportunities. HHPL is a Mumbai-registered company incorporated in December 1968, operating camping sites and other provisions of short-stay accommodation. Its authorised share capital was Rs 20 crore, and its paid-up capital was Rs 7 crore.
Consortium and Oberoi Realty's Role
Oberoi Realty Limited is a Public Limited Company incorporated on May 08, 1998 in India. For over four decades, Oberoi Realty has been an insignia of trust, transparency, cutting-edge technology and differentiated service in the Real Estate sector in Mumbai.
Oberoi Realty is primarily engaged in real estate development and hospitality activities, developing residential, commercial, hospitality, retail, and social infrastructure projects including residential apartments, commercial office spaces, retail spaces, and hospitality services.
Next Steps
The appeal will be heard alongside other related appeals scheduled for February 25, 2026. The bench, including Chairperson Justice Ashok Bhushan and Member Technical Barun Mitra, has directed that these appeals be listed together on that date.