bankruptcy
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NCLT i.e the National Company Law Tribunal orders scrapping the insolvency proceedings against Sikka Infrastructure. In a recent development, the tribunal also directed to stop the Insolvency Resolution Professional (IRP) from carrying out any proceedings in reference with insolvency proceedings.

The Sikka group plea in the court to stop the insolvency proceedings as the matter was settled out of court. The Insolvency Resolution Professional also gave his nod for the same and said that both the parties have settled expenses in an amicable manner.

The insolvency proceeding was initiated by the National Company Law Tribunal against the Sikka group in January after a homebuyer filed a case against the company. The buyer had booked a flat in Sikka Karnam Greens project in the year 2010 and the possession of the same was supposed to be offered by March 2015 however the developer failed to offer possession on time and was liable to pay compensation of Rs. 5 Sq.ft. per month for the delay.

However, the Sikka group said to offer possession by November 2017 but that didn’t happen.

The Court also said that the other 300 claims submitted to the Insolvency Resolution professional are likely to result into a spat of the other petitions under Section 7 or 9 of the code, 2016.

Earlier in January this year, the National Company Law tribunal had begun the insolvency proceedings against Sikka Infrastructure Private Limited. The court also announced 22nd July as the closure date of the case against this renowned developer of the national capital region.

The court has appointed Anup Kumar as the Interim Resolution Professional (IRP) in the case and the creditors were asked to submit their applications to him by 9th February 2019.