NCLT paves the way for liquidation of realtor estate developer 3C Homes
The Delhi bench of the National Company Law Tribunal (NCLT) has ordered the liquidation of real estate developer Three C Homes (3C Homes) Pvt Ltd after it rejected the resolution plan submitted by Ace Infracity Developers Pvt Ltd.
Homebuyers of 3C Homes had raised several objections to the resolution plan submitted by Ace Infracity Developers, and the NCLT found merit in most of the objections.
The homebuyers had raised objection to the fact that the resolution plan had no provision for payment to dissenting homebuyers, who are also the financial creditors. The homebuyers had also pointed out that the resolution applicant wanted to take over 3C Homes by paying a pittance – Rs 180 crore against liquidation value of Rs 481 crore. Even out of the Rs 180 crore that the resolution plan had offered, Rs 85 crore was to be paid by homebuyers, which means the resolution applicant was infusing only Rs 95 crore.
The homebuyers had also raised the issue that the resolution plan had not correctly recorded the cause of default and that the approval of the resolution plan by the CoC was not in accordance of the provisions of IBC.
On the issue of price offered by the resolution plan being lower than the liquidation value, the resolution applicant says that nowhere in the code it is said that the resolution prices should be more than the liquidation value. However, the NCLT took note of the fact that the resolution applicant is only infusing Rs 95 crore in 3C Homes, which is only 19.77% of the liquidation value. It also strongly noted that the treatment of homebuyers in the resolution plan is totally inequitable, unjust and highly objectionable.
The NCLT also took cognizance of the fact that the resolution plan had not made a provision for payment of protesting farmers (on whose land the project has been ) who were seeking Rs 71.66 crore in compensation. The plan had envisaged developing the adjoining Salarpur village with Rs 15 crore so that the farmers drop their claims. The NCLT felt that the plan was not viable unless it makes provision for farmers’ compensation.
The NCLT also agreed with homebuyers’ objection to the CoC’s approval of the plan as it noted that the authorised representative were not allowed proper participation in the voting process.
Also See: NCLAT foils attempt by Supertech to withhold information from homebuyers
