NCLT Delhi initiates insolvency process against Emaar MGF Land – The Economic Times

NCLT Delhi on January 24 has initiated an corporate insolvency resolution process against Emaar MGF Land. The court has appointed Manoj Kumar Anand as the Insolvency Resolution Professional for the case and had directed him to make the announcement public within three days of the order.

The case relates to a home buyer who bought an apartment in Palm Greens, KherkiDaula, Gurgaon for Rs 91 lakh. He pleaded that even though he paid Rs 88.49 lakh, the flat was not delivered to him in proposed time i.e. by July 2014 as per the builder-buyer agreement. The builder did not pay the compensation as well, as per the buyer’s plea.

Sachin Datta, senior advocate and Arjun Jain, Advocate, representing Emaar MGF said that the buyer too has failed to pay the amount timely. Insolvency process against us cannot be initiated as “there is no debt due and payable. The amount has already been invested in the project and unit is virtually complete and OC can be issued anytime now.”

On Jaunary 4, Emaar MGF also showed the intent to settle the matter amicably, which was not entertained.

M.M. Kumar, chief justice (retired) while giving the order said that we are of the view that the default amounting to lakh of rupees has occurred. “The facts in the present case shows that the project is not complete and the occupation certificate has not been obtained till date,” the court said.

The court rejected Emaar’s plea saying that the amount raised from the buyer comes within the scope of ‘financial debt’ and hence he can invoke insolvency resolution process.

The court has further said that Emaar MGF Land cannot transfer, encumber, alienate or dispose any of its assets. It cannot foreclose, recover or enforce any security interest created by them. Emaar also cannot recover any property by an owner or lessor where such property is occupied by or in the possession of the company.

It also directed the petitioner to pay Rs 2 lakh to IRP to meet out the expenses to perform the functions assigned to him.

via NCLT Delhi initiates insolvency process against Emaar MGF Land – The Economic Times

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