38.6c New Delhi, India, Friday, March 29, 2024
Business

Relief For Raheja Developers, NCLAT Halts Insolvency Proceedings

By LawStreet News Network      25 January, 2020 11:01 PM      0 Comments
Relief For Raheja Developers, NCLAT Halts Insolvency Proceedings

Raheja Developers took a massive sigh of relief on January 23, 2020 when the National Company Law Appellate Tribunal (NCLAT) halted insolvency proceedings against the company and referred the management of the company to its Board of Directors.

The issue commenced when theNational Company Law Tribunal (NCLT) held the company to be in default towards two home buyers, who had approached the tribunal seeking relief.

Further facts reveal that the Respondent No.s 1 & 2 (both home buyers) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 with mala fide intent of initiating the liquidation of the company by going straight to the adjudicating authority for the refund of the money invested and not for obtaining possession of the premises they had paid for.

The bench headed by NCLAT Chairman S.J. Mukhopadhyay said, "The appellant 'Corporate Debtor'(company) is released from all the rigours of 'moratorium' and is allowed to function through its Board of Directors from immediate effect."

"The interim resolution professional will hand over the assets and records to the Board of Directors" it further added.

The bench further put forward the fact that the allottees in a large number of cases are speculative investors and not persons who are genuinely interested in purchasing flats.

"They do not want to go as per the obligation of taking possession of the apartment under RERA, but want to really get back, by way of this coercive measure, monies already paid by it."

 

Author: Aarya Mishra

 



Share this article:

User Avatar
About:


Leave a feedback about this
TRENDING NEWS

arvind-kejriwals-plea-for-interim-release-rejected-by-delhi-high-court
Trending Judiciary
Arvind Kejriwal's plea for interim release rejected by Delhi High Court [Read Order]

Delhi High Court rejects Arvind Kejriwal's plea for interim release in money laundering case related to liquor policy scam, pending ED's response.

28 March, 2024 10:50 AM
youtuber-strings-plea-against-youtube-accounts-suspension-andhra-pradesh-hc-issues-notice-to-centre-google
Trending Top Stories
BREAKING: Youtuber String’s plea against Youtube accounts suspension: Andhra Pradesh HC issues notice to Centre, Google

Andhra Pradesh High Court issues notice to the Centre and Google LLC on Youtube journalist String’s plea against suspension of its accounts by Google (which owns Youtube).

28 March, 2024 11:26 AM

TOP STORIES

delhi-liquor-scam-court-remands-arvind-kejriwal-to-ed-custody-till-march-28-read-remand-application
Trending Judiciary
Delhi liquor scam: Court remands Arvind Kejriwal to ED custody till March 28 [Read Order]

Delhi liquor scam: Arvind Kejriwal remanded to ED custody till March 28. Court grants agency permission for interrogation in liquor policy case.

23 March, 2024 11:53 AM
sc-dismisses-centres-plea-for-review-of-judgment-directing-ed-to-furnish-written-grounds-of-arrest-to-pmla-accused
Trending Judiciary
SC dismisses Centre’s plea for review of judgment directing ED to furnish written grounds of arrest to PMLA accused [Read Order]

Supreme Court dismisses Centre's plea, upholds judgment mandating Enforcement Directorate to provide written grounds of arrest in PMLA cases.

23 March, 2024 03:14 PM
kerala-hc-to-hear-lesbian-couples-plea-against-forced-conversion-therapy-on-april-9
Trending Judiciary
Kerala HC to hear lesbian couple’s plea against forced conversion therapy on April 9

Kerala HC will hear a lesbian couple’s plea highlighting that one of them was subjected to forced conversion therapy.

23 March, 2024 03:30 PM
how-can-people-be-compelled-to-vote-madras-hc-asks
Trending Judiciary
“How can people be compelled to vote? Madras HC asks

“How can people be compelled to vote?”, the Madras HC queried in a plea asking employers in Tamil Nadu to demand proof from employees of having voted on polling day.

23 March, 2024 05:04 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email