The NCLT has initiated insolvency proceedings against NCR-based real estate firm Today Homes Noida Ltd on a petition filed by a group of homebuyers.
A two-member NCLT bench, headed by President Justice M M Kumar, has appointed an interim resolution professional (IRP) to take over the management of the company.
There are many companies in Delhi-NCR which are facing insolvency proceedings, including Jaypee Infratech, because of default to home buyers and bankers.
The tribunal rejected the submission of the real estate firm that it has got four-year extension from UP Real Estate Regulation Authority (RERA) to complete the project, saying that Insolvency and Bankruptcy Code (IBC) overrides provisions under the realty law.
Today Homes Noida Ltd had contended that UP-RERA has extended its timeline till June, 2021 to complete the Ridge Residency housing project in sector 135, Noida.
Observing that there is “overwhelming evidence to prove default” against the company, the tribunal directed the erstwhile promoters, directors and employees of Today Homes Noida to “provide every assistance and cooperation” to IRP in managing the affairs of the company.
The National Company Law Tribunal (NCLT) also granted it protection from the lenders by prohibiting them to recover the amount for a certain period. The tribunal order came over a batch of petitions filed by home buyers of the real estate firms, who are now a financial creditor of the company following amendments in the IBC.
The petitioners had entered into home buying agreement with the firm on March 29, 2012 and had paid almost 90 per cent of their amount for flat in the Ridge Residency Housing Project, sector 135, Noida.