Nagpur: Amid a bitter family dispute within the Chhabrani clan, the Mumbai Bench of the National Company Law Tribunal (NCLT) has permitted Roopchand Hotels Private Limited, a Nagpur-based hospitality firm, to continue its regular business operations including hosting events, leasing space, and entering into revenue-generating agreements. The Tribunal, however, laid down strict directives for fair and transparent conduct in all such activities.
The order came while hearing an Interlocutory Application filed by shareholders Ottanlal Rupchand Chhabrani, Krishnarani Shamdas Chhabrani, and Ramchand Rupchand Chhabrani under Sections 241(1), 242(4), and 244(1) of the Companies Act, 2013. The petitioners, members of the promoter group, had sought permission for the company to optimise its idle hotel space and revive stalled business ventures, including running a salon, installing solar panels, and allowing hoardings.
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02 Aug 2025
Opposing the plea were directors Tikamdas Rupchand Chhabrani, Sunil Tikamdas Chhabrani, Vinod Tikamdas Chhabrani, and Kamal Tikamdas Chhabrani, who alleged that the move was an attempt to sidestep an earlier interim order. This order had restrained the company from creating third-party rights or selling its fixed assets. Their counsel also flagged concerns over undisclosed trade receivables amounting to ₹10.22 crore and questioned the transparency of the applicants in recovery efforts.
The Bench, comprising Member (Technical) Sanjiv Dutt and Member (Judicial) Ashish Kalia, clarified that the earlier interim relief did not intend to obstruct the company’s core business activities. The order was meant solely to prevent the alienation or encumbrance of assets.
Recognizing the hospitality sector’s need for consistent commercial activity, the NCLT allowed Roopchand Hotels to resume normal operations. However, it mandated that all revenues earned must be disclosed to all directors and any profits be distributed in line with the Articles of Association and applicable legal provisions. The Tribunal also prohibited the creation of permanent third-party interests or encumbrances.
The matter is scheduled for further hearing on July 14, 2025. The respondents were represented by Adv Atul Pande and Adv Harsh Kesharia, while Adv Pulkit Sharma appeared for the petitioners.
