Insolvency Process Ordered Against Another Delhi Realtor
New Delhi: The spate of insolvency proceedings being initiated against realty firms knows no restraints. Now the The National Company Law Tribunal (NCLT) has ordered for initiation of insolvency against Palm Developers of Delhi.
NCLT has appointed Manoj Kumar Singh as the interim resolution professional (IRP). The insolvency has been ordered under Section 9 of the Insolvency and Bankruptcy Code 2016.
Steel TMT Bars trader Ram Niwas & Sons had approached NCLT saying that its dues of about Rs 1.2 crore were not cleared by the Palm Developers. In its petition, Ram Niwas & Sons said that it had not received payment since August 2017.
Palm Developers had contended in the court that since Ram Niwas & Sons was a sole proprietorship firm, it is a not a legal entity which is covered under the definition of person under Section 3(23) of the IBC, 2016.
However, it admitted its liability towards Ram Niwas & Sons.
After going through the facts of the case and listening to the two parties, the NCLT admitted the insolvency plea and ordered a stay on all ongoing legal cases against the realty firm. The court also prohibited the company from transferring, encumbering or disposing of its assets.
Ram Niwas & Sons has been told by the court to deposit Rs 2 Lakh.