Raheja Developers moves NCLAT against insolvency proceedings
Real Estate

Raheja Developers moves NCLAT against insolvency proceedings

Raheja Developers moved before the appellate tribunal NCLAT to challenge the initiation of insolvency proceedings against the realty firm over default on non-delivery of its Gurugram-based Shilas project. The Principal Bench of the National Company Law Tribunal (NCLT) admitted a plea filed by over 40 of its flat allottees of Sector 109, Gurugram-based projects and directed to initiate a Corporate Insolvency Resolution Process (CIRP). Moreover, the NCLT had also appointed an Interim Resolution Professional (IRP), suspending the board of the realty firm and putting it under the protection of moratorium against lenders, as per the provisions of the Insolvency & Bankruptcy Code. The NCLT has also directed the IRP to submit a report on the progress of the CIRP by January 22, 2025. The said order has been now challenged by Navin Raheja, Chairman & Managing Director of the suspended board of the realty firm before the National Company Law Appellate Tribunal (NCLAT). Raheja's petition was presented before a three-member NCLAT bench, comprising Justice Rakesh Kumar Jain, which directed it to list on Thursday for a hearing. The matter relates to the Raheja Shilas project located at Sector 109, Gurugram, Haryana, where over 40 flat buyers have claimed a default of Rs 1.12 billion against the realty firm. NCLT in its order had said Raheja Developers has a "debt due and default" against the flat allottees, who had made their payments and delivery of the units was not on time and referred it to CIRP. "There is a default on the part of the CD (corporate debtor), in terms of nonpayment of the debt due (delivery of the units) against the amount raised from them under the real estate project when the debt has become due and payable," said the NCLT. The NCLT in its 29-page-long order said possession was to be given in the year 2012-2014 with a grace period of 6 months. However, it was extended further. This debt has been acknowledged via various emails, and the default is continuing, it said. The petitioners had submitted before NCLT that they have paid over 95 % of the total sale price and 100 % of all the demand made to date as per the demand letter issued by Raheja Developers in the majority of cases. However, it completely failed to deliver the possession of impugned units even within the extended schedule, as per the agreement to Sell/Flat Buyers Agreement. It also contended that the petitioners' number is less than 10 % of the total buyers, hence the petition was not maintainable. However, rejecting it, the NCLT said the plea of delay being force majeure taken by the CD shall not apply to the facts of the present case because the difficulty is beyond the control of the CD. "In this case, CD has entered into a litigation with the government department. Therefore, it cannot be termed as force majeure clause," the NCLT said, adding that "the hurdles stated by CD in its reply, affidavits, and written submissions, are not something which can be termed as the force majeure or beyond the control of CD or unforeseeable". Such statutory compliances, NOC, occupancy certificates, etc are part and parcel of such real estate projects. "These hurdles are practical situations for which CD has to come forward for the resolution and he cannot wipe off its liability by taking the defence of force majeure or the defence of illegitimate claims by government/other appropriate authorities," said NCLT in its 29-page-long order. Earlier also, insolvency proceedings were initiated against Raheja Developers in 2019 over a delay in its Raheja Sampada project.

Raheja Developers moved before the appellate tribunal NCLAT to challenge the initiation of insolvency proceedings against the realty firm over default on non-delivery of its Gurugram-based Shilas project. The Principal Bench of the National Company Law Tribunal (NCLT) admitted a plea filed by over 40 of its flat allottees of Sector 109, Gurugram-based projects and directed to initiate a Corporate Insolvency Resolution Process (CIRP). Moreover, the NCLT had also appointed an Interim Resolution Professional (IRP), suspending the board of the realty firm and putting it under the protection of moratorium against lenders, as per the provisions of the Insolvency & Bankruptcy Code. The NCLT has also directed the IRP to submit a report on the progress of the CIRP by January 22, 2025. The said order has been now challenged by Navin Raheja, Chairman & Managing Director of the suspended board of the realty firm before the National Company Law Appellate Tribunal (NCLAT). Raheja's petition was presented before a three-member NCLAT bench, comprising Justice Rakesh Kumar Jain, which directed it to list on Thursday for a hearing. The matter relates to the Raheja Shilas project located at Sector 109, Gurugram, Haryana, where over 40 flat buyers have claimed a default of Rs 1.12 billion against the realty firm. NCLT in its order had said Raheja Developers has a debt due and default against the flat allottees, who had made their payments and delivery of the units was not on time and referred it to CIRP. There is a default on the part of the CD (corporate debtor), in terms of nonpayment of the debt due (delivery of the units) against the amount raised from them under the real estate project when the debt has become due and payable, said the NCLT. The NCLT in its 29-page-long order said possession was to be given in the year 2012-2014 with a grace period of 6 months. However, it was extended further. This debt has been acknowledged via various emails, and the default is continuing, it said. The petitioners had submitted before NCLT that they have paid over 95 % of the total sale price and 100 % of all the demand made to date as per the demand letter issued by Raheja Developers in the majority of cases. However, it completely failed to deliver the possession of impugned units even within the extended schedule, as per the agreement to Sell/Flat Buyers Agreement. It also contended that the petitioners' number is less than 10 % of the total buyers, hence the petition was not maintainable. However, rejecting it, the NCLT said the plea of delay being force majeure taken by the CD shall not apply to the facts of the present case because the difficulty is beyond the control of the CD. In this case, CD has entered into a litigation with the government department. Therefore, it cannot be termed as force majeure clause, the NCLT said, adding that the hurdles stated by CD in its reply, affidavits, and written submissions, are not something which can be termed as the force majeure or beyond the control of CD or unforeseeable. Such statutory compliances, NOC, occupancy certificates, etc are part and parcel of such real estate projects. These hurdles are practical situations for which CD has to come forward for the resolution and he cannot wipe off its liability by taking the defence of force majeure or the defence of illegitimate claims by government/other appropriate authorities, said NCLT in its 29-page-long order. Earlier also, insolvency proceedings were initiated against Raheja Developers in 2019 over a delay in its Raheja Sampada project.

Next Story
Real Estate

Ajmera Realty Acquires Land Parcel in Ghatkopar East

Ajmera Realty & Infra India (ARIIL) has acquired a 1,341.1 sq. mt. premium land parcel in Ghatkopar East, Mumbai. This acquisition, secured through a competitive bidding process with KJ Somaiya Trust at a cost of Rs 0.51 billion. With the earnest money paid and an MoU in place, the project is expected to yield a carpet area of ~44,000 sq. ft., with an estimated GDV of Rs 1.75 billion, said the BSE filing.Situated in Ghatkopar East, a well-established locality with a rising demand for spacious, high-end living, the company sees significant potential to launch an ultra-luxury project in this..

Next Story
Real Estate

Lemon Tree Hotels Launches 8th Property in Gujarat

Lemon Tree Hotels announces the opening of Keys Lite by Lemon Tree Hotels, Vadodara, Gujarat. This is the eighth property of the group in the state, as per the BSE filing.The efficient and affordable hotel features 63 well-appointed rooms and will open in two phases. Of these 57 rooms, a multi-cuisine coffee shop – Keys Café, along with expansive banquet spaces and conference facilities will be launched in the first phase. The remaining six rooms will be operational soon after in the second phase.Vadodara is known for its glorious past, echoed in its magnificent palaces and rich culture. Be..

Next Story
Infrastructure Transport

Nagpur-Goa Shaktipeeth Expressway Set to Revolutionise Travel

The Nagpur-Goa Shaktipeeth Expressway, a major 802-kilometer six-lane route, is set to revolutionize travel between Nagpur and Goa. Developed by the Maharashtra State Road Development Corporation (MSRDC), this expressway will slash travel time from 18-20 hours to just 8-10 hours. By enhancing connectivity across 12 districts, it aims to boost tourism, regional development, and provide easier access to spiritual sites.Stretching from Pavnar in Wardha district to Patradevi on the Maharashtra-Goa border, the expressway will pass through several districts, including Wardha, Yavatmal, Hingoli, Nand..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000