NCLAT Upholds Insolvency, Orders Builder to Expedite Possession
Advocate Dr Ajay Kummar Pandey
Advocate and Consultant | Criminal l Civil l Company Lawl Insolvency l Family Law & ors I Legal Solutions to Clients Nationwide I Best Criminal Lawyer award at Supreme Court
The Marvel Fera Project in Pune, has been a significant point of contention, especially for 70-plus home-buyers whose investments have been stuck due to stalled construction.
The project's insolvency proceedings were ordered by the Hon'ble National Company Law Tribunal (NCLT) a year ago.?
The suspended director of the builder appealed against this order at the National Company Law Appellate Tribunal (NCLAT), leading to today's crucial hearing.
Proceedings at NCLAT
In today's hearing, the builder and promoter jointly attempted to halt the ongoing insolvency proceedings. Despite their efforts, they failed to secure a stay on the NCLT's order. Another developer, Pax Homes, had previously stepped forward with a commitment to complete the construction within a stipulated time frame.?
However, despite being granted two extensions, Pax Homes failed to deliver on their promises.
Submissions and Evidence
During the hearing, Pax Homes attempted to present a positive outlook by submitting selectively chosen photographs of the project, aiming to demonstrate progress.
However, the home buyers effectively countered this attempt by submitting their own set of photographs, which portrayed the project's actual state and the lack of substantial progress.
Contempt Petition and Further Deliberations
In a bid to stall the insolvency proceedings,? suspended directors also filed a contempt petition. This move was vehemently opposed by the home buyers.?
The NCLAT made it clear that once the resolution process is initiated, it cannot be halted arbitrarily.?
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The tribunal suggested that the most viable path for the promoters to exit the insolvency process would be to expedite the completion and handover of the flats to the home-buyers.
Directive and Affidavit Requirement
The NCLAT directed the builder to submit an affidavit detailing the current status of the project, including the readiness of the flats for possession and the availability of all promised amenities such as the clubhouse, gym, and park.?
The tribunal emphasised the necessity of providing these amenities as part of the commitment to the home buyers.
Representation
The 42 homebuyers were represented by Advocate Dr. Ajay Kummar Pandey, who argued professionally and ensured that the interests of the home buyers were prominently highlighted during the hearing.
Awaited Order
A detailed order from the NCLAT is awaited, which will provide further clarity on the next steps and the timeline for the project's completion and handover.
The hearing at the NCLAT today underscored the determination of the home buyers to see the Marvel Fera Project completed and their investments safeguarded.?
The tribunal's firm stance on the continuity of the insolvency process and the requirement for a comprehensive affidavit from the builder mark significant steps toward resolving this long-standing issue.
However, a detailed order is awaited.