Arun Kumar Sinha Vs Three C Homes Private Limited (NCLT Delhi)
The National Company Law Tribunal (NCLT) has approved the resolution plan submitted by Ace Infracity Developers for the financially distressed 3C Homes. This press release provides insights into the approved plan, including provisions for compensation, possession of residential plots, and compliance with the Insolvency & Bankruptcy Code.
Approval of Ace Infracity’s Resolution Plan
The NCLT has granted approval to the resolution plan submitted by Ace Infracity Developers for the acquisition of 3C Homes. The plan received 100% votes from the Committee of Creditors (CoC), and the NCLT recognized the lenders’ “commercial wisdom” in approving the plan.
Key Provisions of the Resolution Plan
The approved resolution plan offers 100% compensation of the principal amount (Rs 71.66 crore) to farmers and includes a total payment of Rs 173.46 crores to the Yamuna Expressway Industrial Development Authority (YEIDA). Additionally, the plan ensures the possession of 512 residential plots in the “Lotus City” project, with an estimated value of Rs 211 crore, to be developed and delivered to the allottees within 24 months.
Compliance with Insolvency & Bankruptcy Code
The NCLT emphasized that the resolution plan submitted by Ace Infracity Developers is in accordance with the provisions of the Insolvency & Bankruptcy Code (IBC) and complies with the regulations of the Insolvency and Bankruptcy Board of India (IBBI). The plan is now binding on Three C Homes Pvt Ltd and other stakeholders, and the moratorium imposed under section 14 of the Code ceases to have effect.
Reconciliation and Special Concessions
The resolution plan includes provisions for reconciliation and special concessions for homebuyers. Genuine buyers will receive a refund of the principal amount on a case-by-case basis, and future claims of plot-owners who could not submit their claims during the resolution process will also be considered. These provisions aim to address the concerns and protect the interests of homebuyers.
Conclusion: The NCLT has approved the resolution plan presented by Ace Infracity Developers for the acquisition of 3C Homes. The plan includes provisions for compensation to farmers, possession of residential plots, and compliance with the Insolvency & Bankruptcy Code. With this approval, the plan becomes binding on Three C Homes and other stakeholders, and the resolution process moves forward.
For more details, please refer to the NCLT order reproduced below.
FULL TEXT OF THE NCLT JUDGMENT/ORDER
1. Brief Facts of the Case
1.1 The present application has been filed by Mr. Gaurav Katiyar, Resolution Professional (“RP”) of M/s. Three C Homes Private Limited (“Corporate Debtor”) on 18.08.2020 under the provisions of Sections 30(6) read with Section 31 of the Insolvency & Bankruptcy Code, 2016 (“the Code” or “IBC”) read with Regulation 39(4) of the Insolvency Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (“CIRP Regulations”) for approval of the Resolution Plan in respect of M/s. Three C Homes Private Limited (“Corporate Debtor”) which has been approved by the CoC in its 5th meeting held on 10.08.2020 submitted by Respondent/Successful Resolution Applicant (“SRA”) namely M/s. Ace Infracity Developers Private Limited.
1.2 This Adjudicating Authority vide order dated 06.09.2019 was pleased to admit the Company Petition IB-432(ND)/2019 filed by Mr. Arun Kumar Sinha (Financial Creditor), for initiating the CIRP under Section 7 of the Code against M/s. Three C Homes Private Limited (Corporate Debtor) and declared the moratorium and appointed the Applicant Mr. Gaurav Katiyar as an Interim Resolution Professional (IRP). A copy of the admission order dated 06.09.2019 is filed along with the application.
2. Collation of claims by RP
2.1 In terms of Section 13 and Section 15 of the Code, the IRP made public announcement in Form-A, which was published in Financial Express (English Edition) and Jansatta (Hindi Edition) Delhi NCR Edition on 20.12.20 19, intimating of the commencement of CIRP of the Corporate Debtor herein and for calling the Creditors to submit their claims along with proof in the prescribed format. The last date of submission of claims was 02.0 1.2020. The IRP constituted the CoC on 09.0 1.2020 and submitted the first report before this Tribunal on 09.0 1.2020 vide CA No. 354/ND/2020 and the same was taken on record vide order dated 23.0 1.2020.
2.2 On 21.01.2020, the CoC passed a resolution for continuing the IRP as RP and accordingly CA-923/2020 was filed before this Tribunal. This Tribunal vide order dated 10.02.2020 approved the recommendation of the CoC to continue the IRP as RP.
2.3 In accordance with Regulation 1 6A(2) of the CIRP Regulations, the RP filed an application bearing CA-286/ND/2019 on 14.0 1.2020 before this Tribunal for the appointment of Authorized Representative for the class of creditors. The said application was allowed by this Tribunal and one Mr. Vijay Kishore Saxena was confirmed as Authorized Representative for allottees of real estate project of the Corporate Debtor.
3. The RP submits that a total of 5 (Five) CoC meetings have been held during the CIRP period which are as follows:
