CHENNAI: The Supreme Court on Thursday last rejected a review petition filed by MGM Healthcare chairman MK Rajagopalan against its earlier order upholding the verdict of the National Company Law Appellate Tribunal (NCLAT) in a case pertaining to the takeover of Appu Hotels.
“Prayer for oral hearing of the review petitions is rejected. We have carefully perused the review petitions as also the grounds in support thereof. In our opinion, no case for review of the common judgment and order dated 03.05.2023 is made out. The review petitions are, accordingly, dismissed. Pending application(s), if any, shall stand disposed of,” said the order dated August 17 and signed by Justice Sanjiv Khanna and Justice Vikram Nath.
This comes on the back of the resolution bid for Appu Hotels (owners and operators of the hospitality brand Le Royal Meridien in Chennai and Le Meridien in Coimbatore) by the MGM founder.
An insolvency petition was admitted by the National Company Law Tribunal (NCLT) Chennai in 2020, against Appu Hotels in a case filed by the Tourism Finance Corporation of India Ltd. Thereafter, Rajagopalan submitted a resolution plan to take over Appu Hotels which was approved by NCLT.
But, Appu Hotels promoter Palani G Periasamy decided to appeal to the NCLAT, which turned down Rajagopalan’s offer. This led to the MGM chairman taking the matter to the Supreme Court. However, in May this year, the apex court upheld the decision of the NCLAT, terming the rejection of Rajagopalan’s Rs 423-crore plan right.
Meanwhile, Periasamy chose to file a 12A petition, which was approved by banks.
It is gleaned from sources that Periasamy had deposited Rs 420 crore, which was raised from a private fund. Now, the 12A plan is awaiting formal approval by the adjudicating authority, NCLT.