NCLT initiates insolvency proceedings against Era Housing
Delhi bench of the National Company Law Tribunal has given its nod for corporate insolvency resolution process against Era Housing and Developers (India) Ltd. The insolvency process was initiated at the request of state run IFCI Ltd. which had stated that the firm has been a non-performing asset (NPA) on its books since 2013. The firm owes around Rs 150 crore.
The NCLT bench set aside the arguments made by the counsel of the corporate debtor that the financial creditor, IFCI had already filed a winding up application in Delhi High Court and further invoked action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act of 2002.
The court in its judgement observed that the plea made by the corporate debtor is devoid of any merit. “In pursuance of the Section 13 (2) of the code we direct that public announcement shall be made by the interim resolution professional immediately with regard to admission of this application under Section 7 of the code,” it said.
A senior official with IFCI said that the committee of creditors would prefer to restructure the loan if any developer comes with a sustainable resolution plan. “If there is a restructuring proposal which is viable we can look at it,” he added.
As per the documents submitted to the court the encumber property is valued at around Rs 229 crore, however, another official aware of the development said that these are highly inflated numbers given this property includes Adel Green World Project. “This project has residential houses and the developer has already sold some of the units. It will be very difficult to do an asset strip or go for liquidation,” he added.
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Delhi bench of the National Company Law Tribunal has given its nod for corporate insolvency resolution process against Era Housing and Developers (India) Ltd. The insolvency process was initiated at the request of state run IFCI Ltd. which had stated that the firm has been a non-performing asset (NPA) on its books since 2013. The firm owes around Rs 150 crore.
The NCLT bench set aside the arguments made by the counsel of the corporate debtor that the financial creditor, IFCI had already filed a winding up application in Delhi High Court and further invoked action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act of 2002.
The court in its judgement observed that the plea made by the corporate debtor is devoid of any merit. “In pursuance of the Section 13 (2) of the code we direct that public announcement shall be made by the interim resolution professional immediately with regard to admission of this application under Section 7 of the code,” it said.
A senior official with IFCI said that the committee of creditors would prefer to restructure the loan if any developer comes with a sustainable resolution plan. “If there is a restructuring proposal which is viable we can look at it,” he added.
As per the documents submitted to the court the encumber property is valued at around Rs 229 crore, however, another official aware of the development said that these are highly inflated numbers given this property includes Adel Green World Project. “This project has residential houses and the developer has already sold some of the units. It will be very difficult to do an asset strip or go for liquidation,” he added.
You can join the Largest Community of Whatsapp Group of Real Estate Buyers in India on Best Real Estate Review Website for more news related to builders.
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