NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) has asked realty firm Raheja Developers to settle its dispute with homebuyers, after the company challenged the NCLT’s order to initiate insolvency proceedings against it.
A three-member NCLAT bench, headed by Chairperson S J Mukhopadhaya, directed the interim resolution professional (IRP) appointed by the National Company Law Tribunal (NCLT) not to issue any public notice and also not to constitute a committee of creditors. The NCLAT directed to list the appeal filed by the realty firm on September 3, 2019, for orders. The appellate tribunal’s direction came over a petition filed by Raheja Developers challenging the order of NCLT that directed to initiate insolvency proceedings on a petition filed by flat buyers. Homebuyers are now considered as financial creditors under the Insolvency and Bankruptcy Code. Last week, a two-member principal bench of the NCLT, headed by President M M Kumar, ordered start of insolvency proceedings and appointed an IRP to take over the management of the company. The tribunal had said “a default has occurred” by Raheja Developers in giving possession of apartments, and rejected the contention of the realty firm that the delay was caused because of lack of infrastructure in the area to be provided by the state government authorities. The NCLT’s order came over a petition filed by a flat buyer of Raheja Developers. The petitioner had booked an apartment in the residential project Raheja Sampada developed by the corporate debtor (Raheja Developers). Raheja Developers had issued a joint allotment letter on August 3, 2012, and executed a flat buyer’s agreement. According to the agreement, possession was to be delivered within 36 months, which was not fulfilled