NCLT initiates insolvency proceedings against Three C Projects

NCLT initiates insolvency proceedings against Three C Projects

Aditi Singh

The  National Company Law Tribunal, Principal Bench has initiated insolvency proceedings against real estate firm, Three C Projects Pvt Ltd.

An order to this effect was passed by a two-member Bench of President, Chief Justice (Retd.) MM Kumar and Member Technical, SK Mohapatra in a Section 7 Insolvency and Bankruptcy Code application by certain allottees under one of Three C’s real estate project, LOTUS ZING.

The allottees claimed that they made payments to Three C as per the “construction linked payment plan” on various dates and were supposed to get the possession of the apartments somewhere in 2014.

The amount due and payable by Three C to the 5 petitioner-allottees is Rs 48,00,914, Rs 39,32,345, Rs 53,82,218, Rs 53,93,522 and Rs 39,35,055.

Since no possession of apartments was delivered till date, the allottees sought to cancel their bookings and claim a refund of the amount paid by them.

Three C argued that there had been a delay in the progress of the project due to Force Majeure conditions such as demonetization, NGT orders, farmer unrest, and agitation and thus relied upon the Apartment Buyer Agreement which provided an extension of “reasonable time” for delivery of apartments.

Calling the averments vague, the NCLT concluded that Three C had no material particulars to show how the progress of the project was retarded due to those reasons.

The Court thus concluded that since the factum of payments made by allottees was undisputed, it was satisfied that a default had occurred and application under Section 7(2) was complete.

Manish Kumar Gupta was appointed as the Interim Resolution Professional and declared a moratorium in terms of Section 14 of IBC.

It further clarified that the supply of essential goods or services, such as the supply of water and electricity, to Three C will not be terminated or suspended or interrupted during the moratorium period.

The allottees were represented by Advocate Piyush Singh and Aditya Parolia.

Three C was represented by Advocates Rajnish Sinha, Nikhil Jain, and Shreya Kohli.

Read the Order:

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