ET: NCLT asks why IRP should not be initiated against CHD Developers

26 August 2019: The National Company Law Tribunal (NCLT) Delhi on August 21 issued a show-cause notice to CHD Developers asking why the corporate insolvency resolution process be not initiated against them.

The court asked the company to file a joint response within a week. Over six separate cases have been filed in NCLT against the company, most of which relates to delay in ongoing projects.

“We grant one week time to the corporate debtor to file a joint reply with a copy in advance to each of the counsel for the petitioner. We issue notice in cases where the notice has not been issued and direct the respective counsel to handover a copy of the petition to corporate debtor’s advocate,” said court.

In one of the cases, the buyer, represented by advocate Aditya Nayyar, had booked an apartment in CHD 106 Golf Avenue situated in Sector 106, Gurugram for Rs 1.34 crore (approx). The builder-buyer agreement was carried out in 2013 and the project was to be completed by 2017. However, it has not been completed till date.

The Economic Times reported

LM: Fresh bids invited for debt-ridden Ariisto Developers under insolvency proceedings

26 August 2019: Resolution professional of debt-ridden Ariisto Developers has invited fresh bids from prospective buyers to revive the Mumbai-based real estate firm which has gone under insolvency proceedings since last year.

Mumbai-based developer Rustomjee Group had emerged as the lone bidder in the first round of bidding. However, the committee of creditors (CoC) has rejected the resolution plan submitted by Rustomjee Group, following which a fresh round of bidding has been invited, according to two people aware of the matter.

“Fresh expression of interest (EOI) have been invited…We have received response from prospective resolution applicants and list will be finalized by September 10th,” said Jayesh Sangkhrajka, resolution professional appointed by NCLT to manage the company. He declined to comment further on the matter. Last date for submitting the bids has been set for 1st of September.

In November 2018, the National Company Law Tribunal (NCLT) had admitted insolvency proceedings against Ariisto Developers which owed around ₹2500 crore to various lenders that includes HDFC Ltd, IIFL Trustee Ltd and Indiabulls Housing Finance Ltd. The builder currently has a housing project spread across 32 acres land in Mumbai’s Mulund area that is yet to take off.

Boman Irani, chairman and managing director, Rustomjee Group, said that the company would be participating in the second round of bidding with a revised offer.

“Our earlier offer was market based. It was little conservative as it was based on the current market situation. Obviously their (Ariisto’s) outstandings are a lot more. I guess there are many secured and unsecured credit. May be they (creditors) thought if they called for fresh bids they would get better offer,” Irani said.

Apart from Rustomjee, few other developers including Wadhwa Group have already submitted their EOIs. “Unlike last time, there could be atleast three-four bidders,” said the first person mentioned above.

“We are keenly looking at stressed opportunities through IBC where we will be partnering with few Stress Assets Funds, we are also working directly with lenders to operationally turnaround their stuck projects, ” said Vrushank Mehta, vice president corporate strategy and investment, Wadhwa Group.

The LiveMint reported

ET: NCLT initiates insolvency proceedings against Raheja Developers

26 August 2019: The National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution process against Raheja Developers under Section 7 of the Insolvency and Bankruptcy Code 2016.

The court has appointed Jitesh Gupta as the interim resolution professional (IRP) for the case.

The buyer had booked an apartment in Raheja’s Sampada in August 2012 for Rs 86.62 lakh. The project was to be delivered in August 2015 but the builder failed to do so. The buyer further pleaded that the builder was to apply for water connections within 15 days and till then portable water through tankers was required to be supplied to the residents, which has not been the case.

Raheja in its plea said that there is no default on part of the corporate debtor. The delay was on part of the authorities as till date water and sewer line has not been provided.

NCLT however admitted buyer’s petition and ordered the builder that the supply of essential goods like supply of water, electricity to the buyer should not be terminated or suspended.

The buyer has been ordered to deposit Rs 1 lakh to the IRP to meet the expenses to perform his function within three days of the order.

The ex-management has been directed to provide all documents in their possession and furnish every information within a period of one week from the admission of the petition to the IRP.

The Economic Times reported

ET: NCLT asks why IRP should not be initiated against Orris Infrastructure

26 August 2019: The National Company Law Tribunal (NCLT) Delhi on August 21 issued a show-cause notice to Orris Infrastructure asking why the corporate insolvency resolution process be not initiated against them.

The court asked the company to file a joint response within a week. Over 15 separate cases have been filed in NCLT against Orris Infrastructure, most of which are related to non-payment of assured returns.

“We grant one week time to the corporate debtor to file a joint affidavit with a copy in advance to each of the counsel for the petitioner. We issue notice in cases where the notice has not been issued and direct the respective counsel to handover a copy of the petition to corporate debtor’s advocate within two days,” said court.

In one of the cases, nine home buyers of Floreal Towers, situated in Sector 83, Gurugram, have pleaded through their advocate Varun Kathuria that the builders has stopped paying assured returns well before the agreed timeline and has also levied Rs 5 lakh to each buyer under “utility charges”.

A similar plea has been made by the buyers of Orris Business Square where the builder had promised assured returns but the project is yet to be started. “Till 2017, the builder paid the assured returns but then they stopped,” said Kathuria.

The Economic Times reported