REI-Project wise Resolution of Real Estate

Project wise Insolvency Resolution of the Real Estate Company, M/s. Supertech Ltd. – Ram Kishor Arora Suspended Director of M/s. Supertech Ltd. Vs. Union Bank of India & Anr. – NCLAT New Delhi

NCLAT held that when Promoters are ready to extend all cooperation with all its staffs and employees to the IRP, we see no reason for not to direct the IRP to proceed with construction of all the projects under the overall supervision and control of the IRP. In CIRP Process, Project-Wise Resolution to be started as a test to find out the success of such Resolution. It directed that CoC be constituted for the Eco Village II Project only with all Financial Creditors including Financial Creditors/Banks/Home Buyers. The Committee of Creditors of Eco Village II Project shall start process for Resolution of Eco Village II Project. The IRP shall separate the claims received with regard to the Eco Village II Project and prepare an Information Memorandum accordingly and proceed for meeting of the CoC as per the Code. It is further directed that even for Eco Village II Project, the IRP shall carry the Project and continue the project as ongoing project by taking all assistance from the ex-management, employees, workmen etc. It cleared that other projects apart from the Eco Village II Project shall proceed as ongoing project basis under the overall supervision of the IRP. IRP in his report stated that with regard to the projects, there are separate accounts as per RERA Guidelines.

Project wise Insolvency Resolution of the Real Estate Company, M/s. Supertech Ltd. – Ram Kishor Arora Suspended Director of M/s. Supertech Ltd. Vs. Union Bank of India & Anr. – NCLAT New Delhi Read Post »

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.

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 Read Post »

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