New Delhi: The bankruptcy court has ordered the admission of a Gurgaon-based real estate developer under the corporate insolvency resolution process (CIRP) in an application filed by IDBI Trusteeship Services after the company defaulted on its dues of about Rs 274 crore.
The Chandigarh bench of the National Company Law Tribunal (NCLT) has also appointed Jayant Prakash as an interim resolution professional (IRP) to run the process for the company.
The lender, IDBI Trusteeship, had approached the tribunal on behalf of the non-convertible debenture (NCD) holders of the developer. Senior counsel Gopal Jain, along with advocate Meghna Mishra, appeared for the trustee company and argued that the company had defaulted in January 2024.
The lenders informed the tribunal that the default of Rs 274 crore includes a principal amount of Rs 146 crore, interest of Rs 29.37 crore, default interest of Rs 43.32 crore and a fixed redemption premium of Rs 55.43 crore.
The lenders argued that the NCDs were secured by an extensive security structure comprising an equitable mortgage created through a memorandum of deposit of title deeds over approximately 6.64 acres of land owned by Aplin Developers Pvt Ltd and approximately 5.575 acres owned by Malvina Developers Pvt Ltd at Village Harsaru, Gurgaon.
Senior advocate Anand Chibbar, appearing for Vatika Ltd, argued that the petition is wholly misconceived, premature and not maintainable in the eyes of the law.
The company argued that the NCDs were to be redeemed on June 30, 2022 under the original trust deed. However, based on the business requirements of the project, the corporate debtor sought an extension, which was accepted and confirmed by the investment manager of the debenture holders, namely Indiabulls Asset Management Company Ltd, extending the redemption date first to June 30, 2023 and then to June 30, 2024.
“These extensions were mutually agreed and were contractually binding,” argued the developer through its lawyers. “Therefore, when the petition was filed on January 24, 2024, the redemption date had not yet arisen, and the question of default did not arise in law.”
The Chandigarh bench of the National Company Law Tribunal (NCLT) has also appointed Jayant Prakash as an interim resolution professional (IRP) to run the process for the company.
The lender, IDBI Trusteeship, had approached the tribunal on behalf of the non-convertible debenture (NCD) holders of the developer. Senior counsel Gopal Jain, along with advocate Meghna Mishra, appeared for the trustee company and argued that the company had defaulted in January 2024.
The lenders informed the tribunal that the default of Rs 274 crore includes a principal amount of Rs 146 crore, interest of Rs 29.37 crore, default interest of Rs 43.32 crore and a fixed redemption premium of Rs 55.43 crore.
The lenders argued that the NCDs were secured by an extensive security structure comprising an equitable mortgage created through a memorandum of deposit of title deeds over approximately 6.64 acres of land owned by Aplin Developers Pvt Ltd and approximately 5.575 acres owned by Malvina Developers Pvt Ltd at Village Harsaru, Gurgaon.
Senior advocate Anand Chibbar, appearing for Vatika Ltd, argued that the petition is wholly misconceived, premature and not maintainable in the eyes of the law.
The company argued that the NCDs were to be redeemed on June 30, 2022 under the original trust deed. However, based on the business requirements of the project, the corporate debtor sought an extension, which was accepted and confirmed by the investment manager of the debenture holders, namely Indiabulls Asset Management Company Ltd, extending the redemption date first to June 30, 2023 and then to June 30, 2024.
“These extensions were mutually agreed and were contractually binding,” argued the developer through its lawyers. “Therefore, when the petition was filed on January 24, 2024, the redemption date had not yet arisen, and the question of default did not arise in law.”
