NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) has set aside insolvency proceedings of real estate developer Vipul Limited.
The Gurgaon-based company approached the court claiming it has reached a settlement with the financial creditors. The NCLAT, however, said that the insolvency proceedings can be resumed in case the company fails to clear its dues.
“The appellant is directed to comply with the ‘Terms of Settlement’, failing which it will be open to the first respondent to move an appropriate application before this appellate tribunal for initiation of contempt proceedings against the appellant or the directors/shareholders and for revival of the ‘corporate insolvency resolution process’,” the NCLAT said in its order.
Vipul was admitted for insolvency proceedings on January 15 by the NCLT. The order was based on the claim filed by four financial creditors.
A spokesperson for Vipul said, “The appeal was listed on January 30. NCLAT has directed the appellant to pay Rs 1 Lakh to the IRP (insolvency resolution process) towards the cost and expenses incurred till date. Both the financial creditor and Vipul had also filed a joint application before the NCLT for withdrawal of the Section 7 petition and consequent termination of the CIRP (corporate IRP).”
The NCLAT said in the order: “In the present case, as we find that the application under Section 7 of the ‘I&B Code’ was admitted on 15th January, 2020 and the parties have reached settlement on the same date i.e. 15th January, 2020 and all the allottees have been allotted the flats/premises as back as in the year 2007 along with common area etc., we by exercising our inherent powers under Rule 11 of the National Company Law Appellate Tribunal Rules, 2016, allow the settlement and set aside the impugned order dated 15th January, 2020 and dispose of the application under Section 7 of the ‘I&B Code’ as withdrawn.”
Vipul has a portfolio of more than 10 million sq feet of delivered properties. It has also undertaken projects in other cities such as Bhubaneswar, Ludhiana, Dharuhera, Bawal, and Faridabad. Its projects include residential, commercial, retail and integrated townships.
There are many companies in Delhi-National Capital Region which are facing insolvency proceedings.
Source- Economic Times.