https://www.freepressjournal.in/mumbai/mumbai-news-nclt-holds-suspended-directors-of-hotel-horizon-guilty-of-civil-contempt-orders-one-week-jail-term
Hotel Horizon Private Limited is undergoing a Corporate Insolvency Resolution Process (CIRP) pursuant to an order passed on November 19, 2024, on a Section 7 petition filed by Asset Care & Reconstruction Limited (ACRE).

Application by resolution professional
The RP, in his application, stated that despite emails, directions and warnings—including the possibility of penal action under Section 70 of the IBC—the promoters allegedly failed to hand over books of accounts, records and custody of assets, and even obstructed transaction audits.

Supreme Court rulings cited
Referring to Supreme Court judgments, the NCLT held that such conduct substantially interfered with the due course of justice and undermined the authority of the tribunal. It noted that insolvency proceedings are time-bound and any obstruction defeats the very object of the IBC.

Proceedings held ex parte
The bench further proceeded ex parte against the respondents after they failed to file replies despite multiple opportunities and did not appear before the tribunal when directed, terming their conduct as showing “lack of respect for the authority of this Tribunal.”

The NCLT has held suspended directors of Juhu-based Hotel Horizon guilty of civil contempt for wilfully disobeying tribunal orders and obstructing the CIRP. They were sentenced to one week’s simple imprisonment, with a final chance granted to comply by handing over assets within 30 days.
Source (read full news article here): https://www.freepressjournal.in/mumbai/mumbai-news-nclt-holds-suspended-directors-of-hotel-horizon-guilty-of-civil-contempt-orders-one-week-jail-term