NCLT Delhi Initiates Insolvency Process Against Ansal Properties & Infrastructure Ltd.
The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in Bibhuti Bhushan Biswas & Ors. v M/s Ansal Properties and Infrastructure Ltd., has initiated Corporate Insolvency Resolution Process ("CIRP") against Ansal Properties and Infrastructure Ltd....
The National Company Law Tribunal ("NCLT"), New Delhi Bench, comprising of Shri Bachu Venkat Balaram Das (Judicial Member) and Shri L.N. Gupta (Technical Member), while adjudicating a petition filed in Bibhuti Bhushan Biswas & Ors. v M/s Ansal Properties and Infrastructure Ltd., has initiated Corporate Insolvency Resolution Process ("CIRP") against Ansal Properties and Infrastructure Ltd. on a Section 7 petition filed by homebuyers under IBC. Mr. Ashwani Kumar Singla has been appointed as the Interim Resolution Professional (IRP).
Background Facts
M/s Ansal Properties and Infrastructure Ltd. ("Corporate Debtor") is a company engaged in real estate sector and was developing a real estate project named "The Fernhill" at Sector 91, Gurgaon, Haryana. Mr. Bibhuti Bhushan Biswas and 125 others ("Home Buyers/Applicants") had purchased residential flats/villas in the Project from 2011 onwards and were assured physical possession within 48 months. Builder-Buyer agreements were entered between the Home Buyers and the Corporate Debtor for the allotted units. The delivery of physical possession of units was due in 2018 for majority home buyers. However, till 31.03.2021 the units were under construction.
The applicant home buyers had paid a total of Rs. 53,46,32,282/- to the Corporate Debtor for the units so purchased. The Home Buyers had contended that the Corporate Debtor had diverted the funds collected from them to Samyak Projects & Infrastructure Ltd. Since neither possession nor refund was received by the Home Buyers, they collectively filed a petition under Section 7 of Insolvency and Bankruptcy Code, 2016 ("IBC"), seeking initiation of Corporate Insolvency Resolution Process ("CIRP") against the Corporate Debtor.
The Corporate Debtor argued that the delay in completion of the Project was due to COVID-19; acquisition and realignment of 24 meter Sector road passing through the Project; and Supreme Court's direction to halt all construction activities in Delhi NCR due to pollution levels. Further, the Home Buyers had also defaulted in payments after a certain period.
Decision Of NCLT
The Bench observed that the Corporate Debtor had sufficient time to complete the Project in terms of Builder Buyer Agreement which it failed to deliver. The Home Buyers have invested their hard earned money which cannot be subjected to loss or be made to bear the brunt of contingencies.
The Bench admitted the petition under Section 7 and initiated CIRP against the Corporate Debtor. Mr. Ashwani Kumar Singla has been appointed as the Interim Resolution Professional (IRP).
Case Title: Bibhuti Bhushan Biswas & Ors. v M/s Ansal Properties and Infrastructure Ltd.
Case No.: IB-330(ND)/2021
Counsel for Applicant: Adv. K.K. Singh and Adv. Nidhi Rani
Counsel for Respondent: Adv. Neeha Nagpal