NCLAT Bars Raheja Developers from Creating Third-Party Rights
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…