NCLAT to Consider Options for Debt Ridden Three C Homes Resolution
The National Company Law Appellate Tribunal (NCLAT) has ordered that other options be considered for resolution of the debt-ridden realty firm. While remanding back the matter to NCLT, the appellate tribunal said liquidation should be the last resort for insolvency resolution process of any residential project and asked NCLT to review its direction.
NCLAT said though a resolution plan will generally provide a higher value than liquidation value, in case of real estate projects it may not be always feasible. The homebuyers are in dire need of their homes, it added.
“Liquidation is the last resort and this programme of homebuyers needs some calibration and proper evaluation,” said NCLAT. It also observed that there is a need for impleading Yamuna Expressway Industrial Development Authority (YEIDA) to ascertain the status of the dispute with farmers and its consequential impact, if any, on this project.
“We are remanding back the matter to the Adjudicating Authority and setting aside their liquidation order with a direction to review the programme in full along with the relevant provisions of the Code and Regulations,” said NCLAT.
NCLT had observed that the liquidation value of Three C Homes was Rs 480.70 crore, while the resolution plan of Ace Infracity Developers involves infusion of only Rs 95 crore by the bidder and that too, over a period of two years. It “does not have any potential” to fulfil the dreams of homebuyers which is at just 19.77 per cent of the liquidation value, NCLT had said.