Operational creditor takes Lotus Greens firm to NCLT

Operational creditor takes Lotus Greens firm to NCLT

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NEW DELHI: The Delhi bench of the National Company Law Tribunal (NCLT) has initiated corporate inso-lvency resolution proceedings (CIRP) against a Lotus Greens group company, the Gurgaon-based Bright Buildtech Pvt Ltd.

An NCLT bench comprising Abni Ranjan Kumar Sinha (member, judicial) and Sumita Purkayastha (member, technical) appointed Naresh Kumar Bhutani as insolvency resolution professional (IRP) on a complaint filed by the operational creditor, Suresh Chand and Sons for non-payment of dues of Rs 1.01 crore.

“It’s the first case of its kind where a real estate company has been dragged into insolvency by operational creditors like real estate agents,” said advocate Piyush Singh, partner at PSP Legal, who represented the real estate agent in this case.

So far, financial creditors like banks or homebuyers would file cases against developers under the Insolvency and Bankruptcy Code.

Singh said the company was developing a 100-acre township in Gurgaon.

The complainant had offered brokerage services to the developer and had raised bills for work that it did in 2015 and 2016.

After prolonged negotiation, the operational creditor sent a final bill of Rs 1.01 crore, including a service tax component of Rs 15.56 lakh on April 8, 2019.

It moved NCLT when it got no response.

Replying to the demand notice, the realty company had in June 2019 disputed the brokerage fee, saying that some of the services for which it was charged could not “conclude into confirmed sale” and asked that the bill be reduced to Rs 36.49 lakh.

However, the NCLT bench noted that “merely disputing the amount does not fall within the ambit of a pre-existing dispute under Section 9 of the code”. The bench admitted the petition and appointed an IRP.

Source- Times of India.