TaxTMI 
TaxTMI 
2021 (11) TMI 1057
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....y Code, 2016 was admitted, and Interim Resolution Professional Mr. Bhim Sain Goyal was appointed. The Appellant had filed the Application IA No. 1115 of 2020 for modification of the order dated 26th February 2020. 2. The sequence of events clarifying the development during the Appeal is given in the form of a chart, which is as under: 17th December 2019 CA/AT/1507 of 2019 filed against the order of the Adjudicating Authority dated 22nd November 2019 The learned Adjudicating Authority has admitted the petition filed under Section 7 of the code by the impugned order. 19th December 2019 The interim stay order was passed by this Appellate Tribunal restraining the Constitution of Committee of Creditors. 31st January 2020 Based on the submissions of the Appellant that he will be filing settlement terms/plan disclosing all material particulars with regard to the completion of the Project, sources from which the Appellant will be arranging funds for completion of the Project and the time frame within which the possession can be given to the allottees, this Appellate Tribunal provided 15 days with further orders to resume CI....
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....t had filed the Application IA No. 1115 of 2020 for modification of the order dated 26th February 2020. 3. In this IA, Appellant has stated that it had filed the settlement terms/plan detailing the Plan disclosing all materials particulars with regard to completion of the housing project, so if the Appellant is allowed to work upon his detailed proposal, then all the allottees will get the house. Therefore, in such circumstances, Appellant has settled the matter with Respondent No. 2 and has filed a Settlement Terms/Plan in regard to the completion of the Project. 4. It is further added that if the IRP is allowed to go ahead with the constitution of the Committee of Creditors and carry on the CIRP, then the Appellant, despite having settled the matter with respondent No. 2 and having a plan for completion of the Project, will have to hand over the management of the Project. At present, the Applicant/Appellant has completed about 70-75% of the infrastructure project. He has arranged the funds/private financer to complete the Project as per the Appellant's proposed Settlement Term/Plan on 13th February 2020. 5. Given the above, Appellant requested to modify the order dat....
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.... 0 T 4 110832 110832 0 56 56 0 T 5 129680 121360 8320 54 52 2 T 6 110832 110832 0 56 56 0 T 7 129988 117366 12622 56 52 4 T 8 97084 87326 9758 40 37 3 T 9 29990 24292 5698 10 8 2 T 10 29990 24211 5779 10 8 2 T 11 29990 20622 9368 10 7 3 T 12 29990 24125 5865 10 8 2 Total 992028 934618 57410 470 452 18 Tower-wise cost to be incurred and receivable from sold/unsold area is as under: Tower No. No. of Flats Total Sold Flats Balance amount receivable from sold Flats Receivable From Unsold Flats Total receivable Construction cost to be incurred T 1 56 56 8.03 0.00 8.03 2.679 T 2 56 56 9.14 0.00 9.14 2.606 T 3 56 56 11.71 0.00 11.71 3.383 T 4 56 56 11.70 0.00 11.70 3.826 T 5 54 52 16.96 4.58 21.53 4.615 T 6 56 56 10.82 0.00 10.82 3.911 T 7 56 52 12.46 6.94 19.40 4.454 T 8 40 37 15.67 5.37 21.03 ....
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..../- 2 month c) T5-T7 - 15 months +/- 2 month Construction of Phase 2 to be started by end of 12 months to raise further fund as the booking of the second phase is not yet done. Customer payments Demand will be raised as per the CLP plan as per the existing BBA Refund in case of cancellation of booking If there is any refund against cancellation of flat by any home buyer then we shall consider to refund the same after handing over the possession to the home buyers who want to take the possession of the flat in the Project. Delay Compensation No claims against the previous delays. Delay compensation shall only be paid if there is delay as per the resolution plan implementation as per the Hon'ble Tribunal direction/order. Utilization of customer funds Proposed mechanism The developer shall utilize the funds in the completion of Tower T1-T12 as per the tabular representation above in the following manner: (i) 70% of total collection shall be used for construction till Application of OC. (ii) 30% of total collection shall be used for payment of EMI, Salary and other project related expenses. The proposed mechanism of utilization of ....
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....er has planned to infuse Rs. 5 Crore to immediately start the Project. The Promoter is in discussion with the M/s. Indsao and few more contractors who has shown faith and willing to complete the balance construction work under the Promoter which will be finalized in few days. That in order to more clarity on the funds utilization the Promoter has annexed a plan for the proper utilization of funds and its planning to maximize the uses in order to complete the projects in time as per the Resolution plan. (c) Planning of the Promoter to execute the Project Since in Phase-I of the Project, where 94% area is sold out and 70% of construction is completed, therefore, the Promoter is planning to complete the Phase-I on priority basis. Further, the Promoter wants to star Phase-II of the Project where only 12% of area is sold only after completion of Phase-I or when atleast 75% units will be booked. Since there are only 22 units booked and allotted in Phase-II and the Company has collected only initial booking amount of Rs. 3.67 crores, therefore, the Promoters is planning to either ....
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....imately 70% complete, but the work is about 80% complete in Tower-8, and this tower has maximum unsold inventory. Tower 9-12 has just 10 flats in each tower. The Plan submitted by the Applicant to take Tower 8-12 in stage-1 is logical, and this stage can be completed within 6-9 Months. Some Plumbing and Electrical work is done in Tower 1-13, and the remaining Plumbing and Electrical work can be carried out in all the remaining towers, side by side, while completing construction of Tower 8-12. According to discussions with the technical consultants, architects and contractor, the Project of Phase-1 (Tower 1-12) can be completed within the total period of 18 Months, provided the funds flow is continued. This period is extendable by 3 Months for making Application for 'occupancy certificate' and obtaining approvals before delivery of flats. 3. Funds Flow The Applicant has considered 100% inflow of funds at the completion of every stage of construction, which is practically not possible. After analysing that 86 Homebuyers (19%) in Phase-I have not yet submitted their claims, I have observed that the corporate deb....
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....ised to the Homebuyers. 4. The Plan is not clear about the payment of EDC/DC charges. Whether Homebuyers will pay as per BBA or as per demand by DTCEP. 5. On page 23, under the head 'Utilization of Customer Funds', 30% of total collection shall be used to pay EMI etc, what EMI means in this Plan. 6. On page 24, under the head 'Approvals, consent from customers', it is mentioned that 'change in plans of T8-T12 and Phase-2, if any. The construction of 'Tower 8-12 is scheduled to commence immediately, and the customers are not concerned with Phase-2, than what is the purpose of this condition. 7. On page 24, under the head 'Customer Cases', there is a condition to withdraw all cases/complaints shall be withdrawn/settled by the Homebuyers immediately. This condition is unfair until the flats are delivered to the homebuyers. 8. The Homebuyers has shown concern on the 'Balance Dues receivable' by the corporate debtor. I ha....
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....n. There are the following major reasons to approve the Revival Plan in the best interest of the Project and the Company: a) The existing management is fully aware of the Project; in case there is a change in the management, the new management will take time to understand the various aspects of the Project. b) The CIRP process will only delay and proposed revival plan. However, the existing management will complete the Project within 15 months. c) The CIRP process will additionally burden the Project with additional costs. d) There is no clarity on who will bid for the Project and what will be offered. e) The management has agreed to hand over the Project in a time-bound manner and without any additional cost burden to the Buyer. f) The existing management will provide an approach road before completion of the Project. g) The Promoters has agreed to provide Personal and Corporate Guarantee for taking finance for the Project and made the provision and back up to start immediately without wasting any time." 16. It is important to....