New Delhi / Noida: The National Company Law Appellate Tribunal (NCLlat) has set aside liquidation orders against Lotus City, a housing project in Yamuna Expressway, and directs NCLT to consider Afresh resolution plans.
Lotus City, home 3C PVT Ltd which applies, entered bankruptcy on September 6, 2019.
This project was launched as far as 2012 , The Credit Committee agreed with a sound share of 62.9%, which was considered 100% supporting a resolution plan in line with the provisions of bankruptcy and bankruptcy code.
However, NCLT rejected the resolution plan and ordered liquidation.
Digital that the project liquidation value at RS 480 Crore is much higher than the RS 95 Crore needed to complete it.
NCLT, in the order, then argues that the resolution plan assumes that farmers will release their claims of Rs 71.66 Crore in exchange for investment in the development of their village, Salalpur.
Piyush Singh from Psp Legal submitted a request on the name of Lotus City Plot Buyers Welfare Association, an association of more than 250 home buyers, before NCLlat set aside NCLT sequence and acknowledge the resolution plan must be accepted.
The applicants argue before the bench of two members of the Justice Jainat Jain, Judicial members, and Ashok Kumar Mishra, technical members, that NCLT did not include the Debt Crore RS 211 because of Allottes, who would give ownership of the plot.
The applicants also argued that NCLT did not include Rs 50.5 Crore Applicant resolutions paid to former project management.
It was debated by the applicant that “because the settlement was carried out after submitting a planned resolution”, the number should be included in the cost of resolution.
NCLlat, in its order, said that while the resolution plan will generally provide a higher value than the value of liquidation, in terms of real estate projects, which may not always be feasible and home buyers desperately need their earliest home.
“In this case, certain reconciliation is needed that what the actual realization value gets whether it is below the liquidation value or the value of liquidation above”, which is observed.
Liquidation is the last choice, note.
Professional temporary resolution (IRP) Gaurav Katiad told TII, “In accordance with the resolution plan offered by ACE, it will develop 50% of the land area of 100 hectares and hand it over to 500 allotte.
The rest of the land will develop or promote.
But this will only be Executed after NCLT issued the final order.
There may be several hearings before all conflicts in the resolution plan are resolved.
“Lotus City was awarded by NCLT to the Ace Group for settlement in 2020.
This is a housing project in sector 22a.
“We have challenged NCLT liquidation in NCLT,” said Ajay Chaudhary, MD, Ace Group, said.
NCLT has started the bankruptcy process on the petition submitted under Section 7 IBC by home buyers, Arun Kumar Sinha.
“Lotus City Circle Circle Committee consists of home buyers entirely because there are no other creditors in this project.
More than 95% of buyers have chosen to support ACE but a small segment has approved the plan.
We are now happy that we will finally get a plot developed,” said Amit Tyagi, a member of the Core Committee of Lotus City plot the cost of buyers, said.
Lotus City will not be liquidated, the court rules on plot buyers plot
