Supreme Court Approves Resolution Plan Implementation for Sharan Hospitality Private Limited After Matter with Majestic Auto Ltd.
Majestic Auto Ltd. has confirmed that the conditions relating to obtaining orders from the Hon'ble Supreme Court have been fulfilled, allowing the company to proceed with the implementation of the Resolution Plan of Sharan Hospitality Private Limited (SHPL). The plan was approved by the Hon'ble Supreme Court of India via an order dated July 17, 2026.The resolution plan relates to a Consent and Dispute Settlement Agreement executed on July 15, 2026, between Majestic Auto Limited and Assets Care & Reconstruction Enterprise Limited (ARC). The Supreme Court’s decision allowed LA. No. 200247/2026, permitting the implementation of the Resolution Plan of SHPL, which it also took on record along with the Consent and Dispute Settlement Agreement.
In light of this favorable order received by Majestic Auto Limited on July 23, 2026, the company is now authorized to move forward with implementing the Resolution Plan. This includes making payments for the Resolution Plan Amount and the Additional Interest Amount as contemplated under the plan, alongside executing inter-related transaction documents, such as the Securities Purchase and other transaction Agreements.
Details regarding both agreements—the Consent Agreement and the Securities Purchase and other transaction Agreements—have been provided:
| Particulars | Consent Agreement (with ARC) | Securities Purchase and other transaction Agreements |
|---|---|---|
| Counterparties | Assets Care & Reconstruction Enterprise Limited ('ARC') | NovumLake Property Fund and 360 ONE Real Assets Advantage Fund (Purchasers), along with related counterparts. |
| Purpose | To document the settlement between Majestic Auto Ltd. and ARC regarding the Resolution Plan of SHPL, allowing joint approach to the Hon'ble Supreme Court for proceedings disposal and plan implementation. | To establish the framework for proposed transfer of securities, including escrow and funding arrangements, required upon the implementation of the Resolution Plan of SHPL. |
| Shareholding | NIL | NIL |
| Related Party Transaction | No. The Agreement does not constitute a related party transaction. | No. The Agreement does not constitute a related party transaction. |
The agreements relate to the proposed transfer of securities by the company pursuant to the implementation of the Resolution Plan for an agreed consideration, subject to the fulfillment of all conditions precedent, including the aforementioned Supreme Court order. Both parties affirmed that neither agreement confers any special rights such as appointment of directors or pre-emptive rights.
MAJESAUT Stock Price Movement
Shares of Majestic Auto Limited today slipped by 0.36%, settling at ₹429.45 following a trading session where the stock fluctuated between a low of ₹425.1 and a high of ₹436.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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