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NCLT, i.e. National Company Law Tribunal closed the insolvency resolution process against the famous Parsvnath Developers’ subsidiary who has settled their dispute with the homebuyers in an amicable settlement.

The Parsvnath Developers’ sister company Parsvnath Landmark is constructing a residential project in Delhi’s Civil lines area and this project comprises of 500 housing units.

The National Company Law Tribunal commenced the Insolvency proceedings against the company in its order of 11th January after the homebuyers filed a complaint in the court regarding the delay in the project’s completion.

However, in its order on 1st February, the National Company Law Tribunal [NCLT] stopped the insolvency proceedings against the developer as the financial creditors informed the Tribunal about their amicable settlement with the company.

The three flat buyers along with the company filed their affidavits before the tribunal informing the decision.

“As a sequel to the above discussion, the order dated January 11, 2019 initiating Corporate Insolvency Resolution Process against the Corporate Debtor is closed and naturally the order would not be given effect any further,” said the NCLT.

NCLT also ordered the appointed Yash Jeet Basrar as the Interim Resolution Professional for the Parsvnath Landmark [IRP] to not to conduct any proceedings. The IRP has informed the law Tribunal that the committee of creditors has not yet been constituted.

The Interim Resolution Professional also informed that 300 claims are received against the Parsvnath landmark after a public notice was issued to invite claims.

The National Company Law Tribunal also said that we hope and trust that the parties will stick by the terms of the settlement and will avoid filling of another petition with a prayer for triggering of Corporate Insolvency and Bankruptcy Process.

The NCLT observed that the tribunal found this application is covered. However we constrained to observe that the 300 claims which have been received by the IRP may result in to a spat of the other petitions under Section 7 or 9 of the Code, 2016.

On January 11, the National Company Law Tribunal commenced insolvency proceedings after three homebuyers filed complaint against the developer for an inappropriate delay in the development of the project and non-refund of their payment.