New Delhi, April 3 The National Company Law Appellate Tribunal (NCLAT) has rejected Raheja Developers' plea to close the insolvency resolution process against its project, Raheja Shilas, in Gurugram, after observing that the issues with flat buyers have not been resolved.
It further stated that an application under Section 12A of the Insolvency and Bankruptcy Code (IBC) for withdrawal of CIRP can only be filed after the issues between the flat buyers and the real estate firm are "resolved and any settlement is reached." It would be open for the flat buyers to file such an application.
"The respondents (Nos. 1 to 43 – flat buyers) have objected to the closure of the CIRP, which was initiated by them. We are of the view that no order can be passed in this appeal to close the CIRP," said an NCLAT bench comprising Chairperson Justice Ashok Bhushan and Barun Mitra, Member (Technical).
Counsel representing Navin Raheja, CMD of Raheja Developers, had submitted that the corporate insolvency resolution process (CIRP) needs to be closed as the respondents have been handed over possession of the flats.
It further submitted that the respondents have already obtained the occupancy certificate, and after making all necessary payments, no issues remain to be determined.
However, NCLAT in its final order on March 20 said: "We have already noted the submissions of the learned Counsel appearing for Respondent Nos. 1 to 43, who has contended that the issues have not been fully solved, and a large number of issues pending with the corporate debtor (CD) remain unresolved."
NCLAT's final direction came in response to a petition filed by Navin, Chairman & Managing Director of the suspended board of Raheja Developers, challenging an order of the Principal Bench of the National Company Law Tribunal (NCLT) in New Delhi, which had on November 19, 2024, directed to initiate CIRP against the real estate firm.
However, in November 2024, NCLAT passed an interim order confining the CIRP to the Raheja Shilas project, located at Sector 109, Gurugram, Haryana. Over 40 flat buyers have claimed a default by Raheja Developers.
"The order dated November 19, 2024 passed by NCLT… is modified to the extent that the CIRP against the CD shall be confined to its project Raheja Shilas (Low Rise) only," said NCLAT in its final order.
It has directed the Resolution Professional to proceed further in the CIRP, including updating the creditors' claims in accordance with law.
Regarding other projects, NCLAT said they may pursue independently in a separate petition.
"The Financial Creditors in a class and Financial Institutions with respect to other projects of the CD, are free to pursue their independent proceedings against other projects of the CD, which shall proceed in accordance with law, unaffected by the initiation of CIRP by the impugned order with respect to the Raheja Shilas project," it said.