The National Company Law Appellate Tribunal (NCLAT) has set aside the order of National Company Law Tribunal (NCLT) that had directed to initiate insolvency proceedings against BPTP Ltd. The realty firm has now settled disputes with the operational creditor.
The National Company Law Appellate Tribunal has given a stay order against the insolvency proceedings against BPTP initiated by the National Company Law Tribunal.
The decision came after the real estate firm informed NCLAT that it has settled the dispute with its operational creditor. Earlier, the NCLT had given judgment to initiate insolvency proceedings against the real estate firm.
The petition against the BPTP was filed by an operational creditor, RBCL Projects. But now the counsel appearing for BPTP has informed the appellate tribunal that the two parties have reached to a settlement on November 15, 2022.
The counsel of BPTP has now sought time to file joint application along with their operational creditor. The counsel for the operational creditor, RBCL, also made a separate statement before NCLAT that it has already settled the dispute with BPTP and received the balance amount.
Admitting the plea of both the parties, NCLAT directed to list the matter on November 23 for the next hearing.
“In the meantime, we stay the order dated November 14, 2022,” NCLAT said.
Earlier, passing an order over a plea by RBCL Projects, the Delhi bench of NCLT had given an order to initiate insolvency proceedings against the developer.
Rejecting the contentions of BPTP of having a pre-existing dispute over the claims with its operational creditor, the NCLT termed it “an afterthought and moonshine” by the realty firm.
NCLT had also appointed an Interim Resolution Professional (IRP) and declared a moratorium against the company as per the procedures of Insolvency & Bankruptcy Code (IBC).
“On perusal of the material available on record, we are of the considered view that the operational creditor has established the default on the part of the corporate debtor (BPTP) in payment of the operational debt being above the minimum threshold limit,” NCLT had said.
“The petition filed under Section 9 fulfils all the requirements of law. Therefore, the petition is admitted. Accordingly, CIRP (Corporate Insolvency Resolution Process) is initiated and the moratorium is declared,” NCLT order had said.
The operational creditor RBCL was given Rs 34.25 crore work order by BPTP in April 2015 for the construction of its group housing project Park Sentosa at sector 77 in Faridabad. Later it was also awarded work orders for other projects – Discovery Park and Astaire Garden.
As per the petitioner’s claim, only partial payment was made against the work order. Later, it received an e-mail from BPTP in July 2017 for the demobilisation of the project, following which it submitted a final bill of Rs 4.90 crore.
The RBCL then filed a petition before NCLT on October 24, 2018, after not receiving the payment. However, it withdrew the petition following a settlement. Later, RBCL Projects again approached NCLT alleging failure of the realty firm to pay the final bill and release the performance guarantee. The creditor claimed a total default of Rs 5.92 crore, including interest of Rs 1.01 crore.
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