IBC Cannot Be Used As A Tool For Recovery - NCLT Delhi
PrintListen to this Article
“We are of the view that in the present case the applicants are already having demands drafts of amount exceeding the defaulted amount in this petition and moreover IBC cannot be used as a tool for recovery; the settlement has been arrived between the parties. The amount has been paid in excess of the default amount and Ld. Counsel for the applicant has also acknowledged the receipt of above stated demand drafts,” the tribunal noted.
The tribunal was hearing an application filed under Section 7 in 2019 against Oris Infrastructure for a default of Rs. 3.60 lakhs.
The 2 applicants had entered into the space buyer agreement with the realty firm in 2010 where it was mutually agreed that the firm would pay an assured monthly return for 36 months after completion of building or till the date office space is put on lease whichever is earlier.
The construction of the project was completed in 2013 and the occupancy certificate was received in 2017 thereby making the period of assured monthly return to end in 2020.
The tribunal noted in its order that the realty firm had issued two demand drafts in favour of both the applicants in lieu of full and final payment of the assured return towards the allotted unit.
The tribunal also recorded that on earlier on two occasions also settlement deed had been entered into between the parties for settling the default in payment of the assured return.
Therefore, the tribunal proceeded to dismiss the two applications filed by commercial space buyers seeking corporate insolvency resolution process against the realty firm.
Category : Insolvent Professional | Comments : 0 | Hits : 349
The National Company Law Tribunal (NCLT) on Monday ordered insolvency proceedings against media baron Subhash Chandra on a plea filed by Indiabulls Housing Finance. A two-member Delhi bench of the NCLT directed initiation of personal insolvency proceedings against Zee Entertainment Enterprises Ltd (ZEEL) Chairman Emeritus Chandra, who was a guarantor for a loan given to Essel group firm Vivek Infracon Ltd. The NCLT bench, consisting members Ashok K Bhardwaj and Subrata K Das,...
The Insolvency and Bankruptcy Board of India (IBBI) invites suggestions/comments from public and regulated entities, on the Regulations for simplifying, easing and reducing cost of compliance. The suggestions are invited in pursuance of the announcement made in the Union Budget for FY 2023-24 by the Union Finance Minister: “To simplify, ease and reduce cost of compliance, financial sector regulators will be requested to carry out a comprehensive review of existing regulations. For th...
To make surety bond business more attractive, the government is looking at making relevant changes in the Insolvency and Bankruptcy Code (IBC) to consider insurers as financial creditor in case of default of infra projects. The surety bond issued by a general insurance company is a three-party contract by which one party (the surety) guarantees the performance or obligations of a second party (the principal) to a third party (the obligee). The surety is a company that provides the fina...
India’s turbulent aviation sector will likely see another player go belly up with Go First of the Wadias filing for voluntary insolvency before the National Company Law Tribunal (NCLT). The budget carrier said it is cancelling all flights on May 3, 4, and 5 and will refund the full fares to the passengers. The Directorate General of Civil Aviation (DGCA) has questioned the cancellation and issued a show-cause to the airline. Go First has been asked to submit its response within 24 ho...
This Order disposes the Show Cause Notice (SCN) No. IBBI/IP/INSP/2020/63/3525/526 dated 10th May 2022 issued to Mr. Anil Tayal, Insolvency Professional under section 220 of the Insolvency and Bankruptcy Code, 2016 (Code) read with regulation 13 of the Insolvency and Bankruptcy Board of India (Inspection and Investigation) Regulations, 2017 (Inspection Regulations) and regulation 11 of the Insolvency and Bankruptcy Board of India (Insolvency Professionals) Regulations 2016 (IP Regulations). &n...
Comments