Corporate debtor permitted to complete real estate project during insolvency proceedings under IRP supervision The NCLAT allowed the corporate debtor to complete a real estate project during CIRP proceedings under IRP guidance. The tribunal accepted the appellant's ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Corporate debtor permitted to complete real estate project during insolvency proceedings under IRP supervision
The NCLAT allowed the corporate debtor to complete a real estate project during CIRP proceedings under IRP guidance. The tribunal accepted the appellant's application for unsecured and secured financial creditors to vote on the Project Completion Proposal. The decision was based on affidavits filed and principles of reverse CIRP established in previous tribunal precedent. The appeal was disposed of with the request being accepted, permitting project completion during the insolvency process.
Issues Involved: - Appeal by Suspended Director against order passed by Adjudicating Authority u/s 7 - Impleading of respondents and filing of Interlocutory Application (I.A.) No. 546/2024 - Voting rights for financial creditors and completion of project proposal
The appeal was filed by Suspended Director against the order passed by the Adjudicating Authority u/s 7 on an application by Financial Creditors for debt resolution. Gaurav Kataria was appointed as the Interim Resolution Professional (IRP) and a moratorium was imposed. During the appeal, the appellant filed I.A. No. 546/2024 seeking permission for unsecured financial creditors and secured financial creditor to vote on the Project Completion Proposal for the Corporate Debtor's project. The application was allowed, and voting rights were granted to the allottees and Tata Capital Housing Finance Ltd. for the completion proposal.
In compliance with the order, the Respondent No.1 filed a compliance affidavit stating that creditors had cast their votes on the settlement proposal, with 99% in agreement and 1% in disagreement. The Resolution Professional and Authorized Representative passed resolutions granting consent for the approval of the Resolution Plan submitted by the Ex-Director for the project. The creditors agreed to be bound by the terms of the Resolution Plan with a 100% majority.
Senior Counsel requested consideration of Prayer (b) in I.A. No. 546/2024, dependent on the success of Prayer (a), which was granted as both stakeholders passed a resolution with 100% voting rights for project completion. The Corporate Debtor was allowed to complete the project under IRP guidance and principles of reverse CIRP. The appeal was disposed of, with liberty given to parties to approach the Court for any difficulties faced during project completion, subject to filing applications before NCLT for compliance and RP report submission post-project completion.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
