Catalyst Trusteeship Ltd. Vs. Mr. N. Kumar RP of M/s. Sheltrex Developers Pvt. Ltd. – NCLT Chennai Bench
Login with GoogleOR Username Password Remember Me Forgot Password In case you’ve already logged in, click here to […]
Constitute Project wise CoC for conducting Reverse CIRP, issue separate EOI for each project and invite Resolution Plans for each project in Real Estate Insolvency are not allowed under IBC – Mr. N. Kumar RP of M/s. Sheltrex Developers Pvt. Ltd. Vs. M/s. Tata Capital Housing Finance Ltd. – NCLT Chennai Bench
In the case, the Resolution Professional filed application to permit to constitute Project-based Committee of Creditors, for the purpose of conducting reverse CIRP and to permit to issue separate Expression of Interest for each project under control of the Corporate Debtor and to consequently invite and place before the respective Committee of Creditors, Resolution Plans for each project under control of the Corporate Debtor. The The Adjudicating Authority held that on a thorough reading of the IBC, 2016 read alongwith the regulations made thereunder envisages the insolvency of the Corporate Debtor and it can be seen that there is no concept of limited CIRP or CIRP for specific projects anywhere. It can be further seen in the Hon’ble Supreme Court judgement in Pioneer Urban Land and Infrastructure Ltd. Vs. Union of India [2019] ibclaw.in 13 SC, that the IBC, 2016 is a beneficial legislation which can be triggered to put the Corporate Debtor back on its feet in the interest of unsecured creditors like allottees, so that a replaced management may carry out the real estate project as originally envisaged and deliver the flat/apartment as soon as possible or pay late fees for late delivery.
