Case Law Details
Grand Developers Pvt. Ltd. Vs Nitin Batra & Ors. (NCLAT Delhi)
The case of Grand Developers Pvt. Ltd. vs. Nitin Batra & Ors. before the National Company Law Appellate Tribunal (NCLAT), Delhi, is a significant legal battle in the realm of corporate insolvency. The appeal, filed by Grand Developers Pvt. Ltd., challenges the rejection of their intervention petition by the National Company Law Tribunal (NCLT), Court VI, New Delhi.
Background of the Case
On October 12, 2021, a company petition (CP IB-682/PB/2021) was filed by the homebuyers of the Festival City Project, alleging defaults by the corporate debtors in delivering possession of the property. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, by 215 financial creditors. The corporate debtors involved were M/s Anand Infoedge Pvt. Ltd. (Corporate Debtor No. 1), M/s Mist Avenue Pvt. Ltd. (Corporate Debtor No. 2), and M/s Mist Direct Sales Pvt. Ltd. (Corporate Debtor No. 3).
The adjudicating authority, by an order dated October 21, 2022, rejected the objections raised by the corporate debtors regarding the maintainability of the Section 7 application. This decision was subsequently upheld by the NCLAT and the Supreme Court of India.
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