The National Company Law Tribunal endorses Ambuja Housing's resolution plan, paving the way for Riverbank Developers' recovery under the IBC framework.
In a pivotal decision, the National Company Law Tribunal (NCLT) in Kolkata approved the resolution plan submitted by Ambuja Housing and Urban Infrastructure Company Limited for Riverbank Developers Private Limited. The plan, which received a 90.61% approval from the Committee of Creditors (CoC), marks a significant step in the ongoing efforts to resolve the insolvency proceedings under the Insolvency and Bankruptcy Code, 2016.
The resolution plan, valued at INR 34 crore, aims to rejuvenate Riverbank Developers, a prominent real estate entity, by addressing its financial obligations and ensuring the completion of pending projects. This move is expected to impact positively the 2,493 homebuyers involved.
The Tribunal, led by Judicial Member Smt. Bidisha Banerjee and Technical Member CMDE. Siddharth Mishra, highlighted that the approved plan aligns with Sections 30 and 31 of the IBC, 2016, and the corresponding regulations of the Insolvency and Bankruptcy Board of India (IBBI). The decision came after extensive deliberations and numerous meetings of the CoC, which worked closely with the Resolution Professional, Mr. Ashish Chhawchharia.
Key aspects of the plan include the extinguishment of past liabilities and the transfer of management to new hands, ensuring a fresh start for the corporate debtor. The Tribunal underscored the importance of adhering to statutory obligations, directing the new management to comply within a year from the order date.
The adjudicating authority granted specific reliefs and waivers strictly within the ambit of the IBC and the Companies Act, 2013. However, it emphasized that other requests falling under different government jurisdictions would require separate considerations by the respective authorities.
The judgment resonates with prior Supreme Court rulings, reinforcing the notion that approved resolution plans are binding and extinguish any unclaimed or unresolved liabilities. Consequently, all stakeholders, including creditors and government bodies, must adhere to the terms set forth in the resolution plan.
With the approval, the moratorium under Section 14 ceases, allowing Riverbank Developers to resume operations under its new management. This decision is poised to bring stability and assurance to the homebuyers and creditors involved, while reaffirming the efficacy of the IBC framework in resolving corporate insolvencies.
Bottom Line:
Approval of Resolution Plan under Insolvency and Bankruptcy Code, 2016 - Resolution Plan submitted by Ambuja Housing and Urban Infrastructure Company Limited approved by CoC with majority voting share and confirmed by Adjudicating Authority.
Statutory provision(s): Sections 30, 31, 32A of the Insolvency and Bankruptcy Code, 2016; Regulations 38 and 39 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016; Section 14 of the Insolvency and Bankruptcy Code, 2016.
Mr. Ashish Chhawchharia, Resolution Professional, (NCLT)(Kolkata) : Law Finder Doc Id # 2829493
