NEW DELHI: The bankruptcy court has ordered admission of a Gurgaon-based real estate developer under the corporate insolvency resolution process (CIRP) in an application filed by IDBI Trusteeship Services after the company defaulted on its debts of around Rs 274 crore.The Chandigarh bench of the National Company Law Tribunal (NCLT) has also appointed Jayant Prakash as interim resolution professional (IRP) to lead the process for the company.
The lender, IDBI Trusteeship, had approached the tribunal on behalf of the holders of non-convertible debentures (NCDs) of the developer. Senior counsel Gopal Jain appeared for the trust company along with lawyer Meghna Mishra and argued that the company had defaulted in January 2024.
The lenders told the tribunal that the default of Rs 274 crore includes principal amount of Rs 146 crore, interest of Rs 29.37 crore, default interest of Rs 43.32 crore and fixed repayment premium of Rs 55.43 crore.The lenders argued that the NCDs were secured by an elaborate security structure consisting of an equitable mortgage created by way of a memorandum of deposit of title deeds over about 6.64 acres of land owned by Aplin Developers Pvt Ltd and about 5,575 acres owned by Malvina Developers Pvt Ltd at Village Harsaru, Gurgaon.
Senior advocate Anand Chibbar, appearing on behalf of Vatika Ltd, submitted that the petition is grossly misconceived, premature and not maintainable in the eyes of law.
The company argued that the NCDs would be redeemed on June 30, 2022 under the original trust deed. However, based on the business requirements of the project, the corporate debtor requested an extension, which was accepted and confirmed by the bondholders’ investment manager, namely Indiabulls Asset Management Company Ltd, extending the redemption date first to June 30, 2023 and subsequently to June 30, 2024.
“These extensions were mutually agreed upon and contractually binding,” the developer argued through its lawyers. “Thus, when the petition was filed on January 24, 2024, the redemption date had not yet arisen, and the issue of default did not arise in law.”
#bankruptcy #court #orders #insolvency #proceedings #Vatika