Joint application under Section 7 of IBC can be filed against one or more Corporate Debtors who have come together to develop a Real Estate project and parameters as noticed in Videocon Industries Ltd. and BT & FC Pvt Ltd. cases need not be applied in case of Real Estate Project – Mist Avenue Pvt. Ltd. Vs. Nitin Batra & Ors. – NCLAT New Delhi

Hon’ble NCLAT held that:
(i) CIRP in the Real Estate Project has different contours and ramification.
(ii) Consolidated Insolvency Resolution Process can be initiated against one or more Corporate Debtors who have come together to develop a project.
(iii) Parameters as were noticed in SBI vs. Videocon Industries Ltd. (2019) ibclaw.in 17 NCLT and Radico Khaitan Ltd Vs. BT & FC Pvt Ltd. (2021) ibclaw.in 160 NCLAT need not be applied in case of Real Estate Project.
(iv) Requirement of threshold under proviso in Section 7(1) must be fulfilled as on the date of filing of the Application.
(v) Claim of allottees who are barred by time should not be excluded from number of 100 which is required to be proved the threshold
(vi) Allottees settled the matter cannot be excluded in the counting of 100 allottees which are required to be fulfilled as threshold. The mere fact that claim of some other barred by time is insignificant.

Joint application under Section 7 of IBC can be filed against one or more Corporate Debtors who have come together to develop a Real Estate project and parameters as noticed in Videocon Industries Ltd. and BT & FC Pvt Ltd. cases need not be applied in case of Real Estate Project – Mist Avenue Pvt. Ltd. Vs. Nitin Batra & Ors. – NCLAT New Delhi Read Post »