Tribunal Directs NOIDA Authority to Issue Certificate for Victory Crossroads Project

The Tribunal directed the NOIDA Authority to issue the Occupation and Completion Certificate (OC & CC) for the project "Victory Crossroads" developed by the Corporate Debtor, despite outstanding compounding charges amounting to Rs. 16,23,67,173/-. The Authority was instructed not to withhold the certificate based on pre-CIRP dues, referencing a Supreme Court order. Residents and the Resident Welfare Association were directed to pay current water bills, and the RP was tasked with obtaining pending documents for the issuance of the OC & CC. The Tribunal provided clear directions in disposing of the application, ensuring compliance with necessary requirements.

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Issues Involved:
1. Issuance of Occupation and Completion Certificate (OC & CC) by NOIDA Authority.
2. Payment of water and sewer charges.
3. Submission of pending documents and payment of charges.

Issue-wise Detailed Analysis:

1. Issuance of Occupation and Completion Certificate (OC & CC) by NOIDA Authority:

The Tribunal addressed the application filed by the Resolution Professional (RP) for directions to NOIDA Authority to grant the Occupation and Completion Certificate for the project "Victory Crossroads" developed by the Corporate Debtor (CD). The CD had initially applied for the OC & CC on 30.12.2014. The NOIDA Authority had demanded a sum of Rs. 5,89,62,295/- as compounding fees with interest and other charges on 20.02.2015, which was not fulfilled by the CD. Subsequent reminders were sent by the NOIDA Authority on 13.07.2017 and 12.12.2019, but the required documents and payments were not provided by the CD.

The Tribunal noted that the NOIDA Authority, in its reply dated 16.02.2021, contended that the OC & CC could not be issued until the required documents and payments, including compounding charges amounting to Rs. 16,23,67,173/-, were submitted. The RP argued that the compounding charges were calculated wrongly and revised arbitrarily, and that the CD did not have the funds to make the payments.

The Tribunal directed that the compounding charges, being prior to the initiation of the Corporate Insolvency Resolution Process (CIRP), should be raised before the RP. The NOIDA Authority could not refuse to issue the OC & CC based on these outstanding dues, referencing the Hon'ble Supreme Court's order in the Amarpali Group Case (WPC (C) 940/2017, Order dt. 23 July 2019).

2. Payment of Water and Sewer Charges:

The RP applied for a water and sewer connection on 01.07.2020, for which the NOIDA Authority issued a challan amounting to Rs. 70,85,766/-. The RP contended that the CD did not have the funds to pay this amount. The NOIDA Authority argued that the water and sewer connection could not be issued until the payment was made.

The Tribunal observed that out of 291 flats, about 250 home buyers had occupied their flats and were using electricity and water facilities. The Tribunal directed that the payment of current water bills (after the initiation of CIRP) was the responsibility of the residents and the Resident Welfare Association (RWA), which had entered into a maintenance agreement. The residents and RWA were directed to pay the current bills within one month from the date of the order.

3. Submission of Pending Documents and Payment of Charges:

The NOIDA Authority listed several pending documents required for the issuance of the OC & CC, including:
- Water bill payment receipt
- No dues certificate from Group Housing Department
- Environment NOC
- Consent to operate issued by the U.P. Pollution Control Board
- No dues certificate from Labour Cess Department
- Compounding charges amounting to Rs. 16,23,67,173/-
- Solid Waste Management documents

The RP contended that the CD did not have the funds to pay the water charges and that some of the required documents were either already submitted or were being processed. The RP also argued that the compounding charges were a point of contention and had been calculated wrongly.

The Tribunal directed the RP to take necessary steps to obtain the pending certificates and, upon submission of these certificates to the NOIDA Authority, the NOIDA Authority was directed to issue the OC & CC, subject to the payment of current water bills by the residents or the RWA. The NOIDA Authority was instructed not to refuse the issuance of the certificate based on outstanding dues prior to the initiation of CIRP.

Conclusion:

The Tribunal disposed of the application IA/3883/2020, providing clear directions for the issuance of the OC & CC, the responsibility for payment of current water bills, and the submission of pending documents, ensuring that the NOIDA Authority could not withhold the OC & CC based on pre-CIRP outstanding dues.

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