Homebuyers of 'Lotus Aren 1' Noida Are Given Flats In Lieu Of Their Claims, Approves Resolution Plan: NCLAT Delhi

The Homebuyers/Allottees of Lotus Arena I project would be given flats in lieu of their dues.

Background Facts

Arena Superstructures Pvt. Ltd. (“Corporate Debtor”)is engaged in the business of Real estate and is a part of Lotus Group promoted by Mr. Nirmal Singh. The name of the Corporate Debtor’s project is Lotus Arena I, situated in Sector 79, NOIDA, U.P. A total of nine towers was proposed to be constructed having 1080 units. Out of 1080 proposed flats, 858 have been sold and 222 remain unsold.

M/s. Dhankalash Distributors Private Limited (“Financial Creditor”) filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), seeking initiation of Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor. The CIRP was initiated against the Corporate Debtor on 29.10.2020 by the NCLT.

M/s. Purvanchal Projects Pvt. Ltd. (“Successful Resolution Applicant/SRA”) submitted a Resolution Plan for the Corporate Debtor, which was approved by the Committee of Creditors (“CoC”) with 71.11% voting share. Accordingly, the Resolution Professional filed an application under Section 30(6) of IBC before the NCLT, seeking approval of the Resolution Plan.

Outlay Of The Resolution Plan

The fair value of the Corporate Debtor isRs. 224.93 Crores and liquidation value is Rs.151 Crores. The Resolution Plan is valued at Rs. 584 Crores.

The SRA is a company engaged in the business of Real Estate and has residential and commercial projects.

The resolution plan proposes to pay the Secured Financial Creditors an amount of Rs. 70 Crores against an admitted claim of Rs. 200.27Crores. The Unsecured Financial Creditors would be paid Rs. 50 Lakhs against their admitted claim of Rs. 2 Crores. The admitted claim of Homebuyers/Allottees amounts to Rs. 497.8 Crores. The Resolution plan proposes to pay off these dues by delivering flats to the homebuyers. The timeline for completion of construction of the Project and delivery of Flats to homebuyers is36 months(after the Transfer Date).

The Operational Creditors (including Statutory Liberties admitted by RP) will be paid Rs. 10 Crores as against an admitted claim of Rs. 79.9 Crores. The Workmen/Employees of the Corporate Debtor are to be in full against their admitted claim of Rs.11,76,646/-.

NCLT Verdict

The Bench has approved the Resolution Plan of M/s. Purvanchal Projects Pvt. Ltd. for M/s. Arena Superstructures Pvt. Ltd.

Case Title: M/s. Dhankalash Distributors Pvt. Ltd. v Arena Superstructures Pvt. Ltd.

Case No.: CP (IB) No.875(PB)/2020

Counsel For Resolution Professional: Nitish Kumar Sharma, Adv. Manmeet Singh, Adv. Nastassia Khurana, Adv. Chaitanyashil Priyadarshi, Adv. Tejaswi Bhanu, Adv. Aditya Dewan, Adv. Sahil Chandra, Adv. Vivek Kumar Mishra Adv.

Counsel For Objector (ACRE): P. Nagesh (Sr. Adv.), Apporv Agarwal Adv.

Counsel For SRA: Sunil Fernandes, Adv. Diksha Dadu, Adv. Prithu Garg, Adv. Kirti Gupta Adv.

Counsel For NOIDA: Sanjeev Sen., Sr Adv, Abdhesh Chaudhary, Adv. Nishi Kant Singh, Adv. Manisha Suri, Adv. Geetanjali Setia, Adv.

Counsel For IBBI: Madhavi Diwan, ASG, Vikas Mehta, Adv, Rashi Rampal, Adv, Sahil Monga, Adv.

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