Another realty company faces insolvency, this time in South India

New Delhi: Another real estate company may soon be wound up, this time in down south. The NCLT has admitted insolvency petition against Landmark Housing Projects Chennai Ltd.

Jindal Steel approached the court as the real estate company was not able to pay for the TMT steel bars purchased by it from Jindal steel worth Rs 13.49 lakh. The steel bars were purchased in May 2014. The steel maker had also claimed an interest of Rs 23.55 lakh on Rs 13.49 lakh calculated at a rate of 36 percent.

According to Jindal Steel, several notices were sent to the real estate firm for recovery of the bill for the steel bars but neither there was payment nor any reply.

Landmark Housing Projects counsel Nathan and Associates said before the NCLT that there were three of October 2014, November 2014 and December 2014 but invoices were neither signed nor sealed by the authorised signatory of the realty firm.

The real estate company alleged that the invoices were signed by the purchase manager of Landmark who was not legally authorised for the purpose. The realty firm, alleged that Jindal Steel had colluded with the purchase manager for putting the signature and affixing a seal in the ledger of the realty firm. 

But this contention was dismissed by the NCLT judges who said that Landmark Housing Projects had not rebutted the amount involved that was due and payable to the steel maker but raised a weak defence which was not supported by any documentary evidence.

The court appointed Sanjeevi C as interim Resolution Professional.