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Raheja Developers appeals to NCLAT over insolvency case in Gurugram
Real Estate

Raheja Developers appeals to NCLAT over insolvency case in Gurugram

21 Nov 2024 2 Min Read CW Team
Raheja Developers has approached the appellate tribunal, NCLAT, to contest the initiation of insolvency proceedings against the company. This action follows the National Company Law Tribunal's (NCLT) admission of a plea by more than 40 flat allottees related to the Shilas project in Sector 109, Gurugram. The allottees had alleged defaults in delivery.

The NCLT directed the commencement of the Corporate Insolvency Resolution Process (CIRP) for Raheja Developers. As part of this process, the tribunal appointed an Interim Resolution Professional (IRP), suspended the company's board, and placed it under a moratorium to shield it from lenders, in accordance with the Insolvency & Bankruptcy Code.

Additionally, the NCLT instructed the IRP to submit a progress report on the CIRP by January 22, 2025. This order has been challenged by Navin Raheja, Chairman and Managing Director of the suspended board, before the NCLAT.

Raheja's petition was presented before an NCLAT bench led by Justice Rakesh Kumar Jain. The tribunal directed that the matter be listed for hearing on Thursday.

The case pertains to the Shilas project in Sector 109, Gurugram, where flat buyers have claimed a default of Rs 1.12 billion by Raheja Developers. The NCLT, in its order, stated that the company had a ‘debt due and default’ against the flat allottees, who had made payments but had not received possession of their units on time. The tribunal noted that the company had failed to deliver units within the agreed timeline and referred the matter to CIRP.

The NCLT further highlighted in its 29-page order that possession of the units was initially scheduled between 2012 and 2014, with a six-month grace period. However, the deadline was repeatedly extended. The tribunal added that the debt had been acknowledged through emails, and the default was on-going.

Raheja Developers has approached the appellate tribunal, NCLAT, to contest the initiation of insolvency proceedings against the company. This action follows the National Company Law Tribunal's (NCLT) admission of a plea by more than 40 flat allottees related to the Shilas project in Sector 109, Gurugram. The allottees had alleged defaults in delivery. The NCLT directed the commencement of the Corporate Insolvency Resolution Process (CIRP) for Raheja Developers. As part of this process, the tribunal appointed an Interim Resolution Professional (IRP), suspended the company's board, and placed it under a moratorium to shield it from lenders, in accordance with the Insolvency & Bankruptcy Code. Additionally, the NCLT instructed the IRP to submit a progress report on the CIRP by January 22, 2025. This order has been challenged by Navin Raheja, Chairman and Managing Director of the suspended board, before the NCLAT. Raheja's petition was presented before an NCLAT bench led by Justice Rakesh Kumar Jain. The tribunal directed that the matter be listed for hearing on Thursday. The case pertains to the Shilas project in Sector 109, Gurugram, where flat buyers have claimed a default of Rs 1.12 billion by Raheja Developers. The NCLT, in its order, stated that the company had a ‘debt due and default’ against the flat allottees, who had made payments but had not received possession of their units on time. The tribunal noted that the company had failed to deliver units within the agreed timeline and referred the matter to CIRP. The NCLT further highlighted in its 29-page order that possession of the units was initially scheduled between 2012 and 2014, with a six-month grace period. However, the deadline was repeatedly extended. The tribunal added that the debt had been acknowledged through emails, and the default was on-going.

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