NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) has rejected Raheja Developers’ request to terminate the insolvency resolution process concerning its Raheja Shilas project in Gurugram, citing unresolved issues with flat buyers.
The tribunal stated that an application under Section 12A of the Insolvency and Bankruptcy Code (IBC) for withdrawal from the Corporate Insolvency Resolution Process (CIRP) can only be filed once the disputes between flat buyers and the firm are fully settled. Flat buyers remain eligible to file an application under Section 12A.
“Respondent Nos. 1 to 43 (flat buyers) have opposed the closure of the CIRP, which they initiated. We believe no order can be made in this appeal to end the CIRP,” remarked an NCLAT bench that included Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra.
Counsel representing Navin Raheja, CMD of Raheja Developers, argued that the CIRP should be closed as the respondents have received possession of their flats.
It was further claimed that the respondents had obtained the occupancy certificate and that, with all dues settled, no issues remained unresolved.
However, in its ruling on March 20, NCLAT stated: “We acknowledge the arguments presented by the Counsel for Respondent Nos. 1 to 43, who asserted that many issues remain unresolved with the corporate debtor.”
NCLAT’s decision followed a petition filed by Navin, Chairman & Managing Director of Raheja Developers, appealing against a November 19, 2024 directive from the New Delhi-based Principal Bench of the National Company Law Tribunal (NCLT) to initiate CIRP against the real estate firm.
In November 2024, NCLAT issued an interim order limiting the CIRP to the Raheja Shilas project in Sector 109, Gurugram. More than 40 flat buyers have alleged that Raheja Developers defaulted.
“The order issued by NCLT on November 19, 2024, is modified to state that the CIRP against the corporate debtor will only pertain to the Raheja Shilas project (Low Rise),” NCLAT stated in its final ruling.
The tribunal has instructed the Resolution Professional to move forward with the CIRP, including updating the creditors’ claims according to the law.
Regarding other projects, NCLAT noted that they could pursue their claims independently in separate petitions.
“Financial Creditors and Financial Institutions concerning the other projects of the corporate debtor are free to initiate their independent proceedings, which will be unaffected by the initiation of CIRP related to the Raheja Shilas project,” it concluded.
