2024 (3) TMI 1235 - AT - Insolvency and Bankruptcy

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 ... CIRP - Completion of Real estate project during the Proceedings - Appellant filed an application seeking permission for unsecured and secured financial creditors to vote on the Project Completion Proposal - HELD THAT:- The Corporate Debtor is allowed to complete the project under the guidance of the IRP, in terms of the affidavit filed on 24.08.2023, 04.09.2023 and 23.12.2023 and also on the principles of reverse CIRP which has been propounded by this Tribunal in the case of FLAT BUYERS ASSOCIATION WINTER HILLS – 77, GURGAON VERSUS UMANG REALTECH PVT. LTD THROUGH IRP & ORS. [2020 (2) TMI 1409 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI]. The request has been made by the appellant is hereby accepted and as a result thereof, the present appeal is hereby disposed of. 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 proposalThe 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.