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NCLAT has held that the CIRP for a real-estate company should be on project basis.
Stating that it is difficult to follow the "normal course" in cases of real-estate companies, the National Company Law Appellate Tribunal has stated that a ‘Reverse Corporate Insolvency Resolution Process’ can be followed in such cases in the interest of the allottees and survival of the company.
The NCLAT has also held that when creditors of a real-estate project initiate proceedings under Insolvency and Bankruptcy Code, 2016 against a real estate company, the corporate insolvency resolution project is to be confined to that particular project only.
Allottees or financial institutions/ banks or operational creditors of other projects cannot file a claim before the Resolution Professional, NCLAT has clarified.