The Principal Bench of the National Company Law Appellate Tribunal (NCLAT) in Delhi has prohibited Raheja Developers from selling units or land, thus preventing the creation of third-party rights.
“With insolvency proceedings underway, it is clear that the management of the corporate debtor must not create any third-party rights in its immovable properties,” stated the NCLAT in its ruling.
Earlier, homebuyers expressed concerns over the company’s assets being sold without guidance from the Interim Resolution Professional (IRP). The company’s advocates contended that such sales are necessary for maintaining the company’s operations and should include the unsold inventory.
“It is our goal to ensure that potential buyers understand that insolvency proceedings are ongoing against the developer. The builder continues to sell land and units despite these proceedings. We hope for a swift resolution so that buyers can receive their units,” commented a homebuyer.
The counsel for the IRP reported that they have received various notices from the RERA Authority and other entities that require a defense on behalf of the corporate debtor. “We clarify that the Interim Resolution Professional is permitted to represent the corporate debtor before the authorities regarding the notices issued and to defend it in accordance with the law, aided by the corporate debtor’s directors, officers, and employees,” the NCLAT concluded in its order.
