In a rare move, the National Company Law Tribunal (NCLT) has recalled and set aside its own order that initiated insolvency proceedings against Logix Infrastructure in July 2023. The tribunal found that the plea was filed with fraudulent and mala fide intentions, accusing financial creditor Experts Realty Professionals of orchestrating a collusive petition. 

NCLT stated that the insolvency petition was filed with an ulterior motive, using the forum for purposes other than legitimate insolvency resolution. It observed a nexus between the financial creditor and Logix Infrastructure, indicating a malicious intent that went against the objectives of the Insolvency and Bankruptcy Code (IBC). 

The tribunal has ordered a thorough investigation by the Serious Fraud Investigation Office (SFIO) to examine the alleged fraudulent and collusive actions. Additionally, the Resolution Professional has been directed to hand over the management of Logix Infrastructure back to its ex-management and suspended board of directors. 

If any resolution plan has been submitted by a successful bidder, the tribunal directed the refund of the earnest money deposit and performance bank guarantee within a week. Furthermore, the financial creditor has been ordered to bear all costs, fees, and expenses of the Resolution Professional within the same timeframe. 

NCLT also imposed a penalty of Rs 500,000 on the financial creditor, directing it to deposit the amount in the Prime Minister’s National Relief Fund (PMNRF) within ten days.

 

The latest ruling came after allottees of Logix Blossom Country, a project by the realty firm, petitioned the tribunal to revoke the insolvency process, citing fraudulent intent aimed at defrauding creditors and flat allottees. 

(millenniumpost)