Now, Group Insolvency Proceedings Initiated Against 6 Builders In One Go
New Delhi: In yet another case of insolvency proceedings against developers in Delhi NCR, six real estate companies will face such proceedings including Adel Landmarks Ltd, according to news reports.
The National Company Law Appellate Tribunal (NCLT) has recently allowed ‘Group Insolvency’ proceedings against Magad Realtors Pvt. Ltd, Sachet Infrastructure Pvt. Ltd, Jamvant Estates Pvt. Ltd, Sameeksha Estate Pvt. Ltd and Mehak Realtech Pvt. Ltd, apart from Adel. The court was of the view that only when insolvency proceedings against all the six entities would be initiated that there would be justice in dealing with the case a township that was to be developed by them in Haryana.
In an earlier judgment in the case related to non-development of the township project in Haryana, Edelweiss Asset Reconstruction Company Ltd (EARCL) was given Corporate Guarantee.
In this recent case before the NCLT, EARCL had pleaded that since nine Corporate Debtors had agreed amongst themselves to jointly develop the project, insolvency proceedings should be started against all of them. However, NCLT decided to initiate the proceedings against Adel Landmarks as it was the Principal Borrower and five other companies since the project was to be developed on the land belonging to these six companies only.