Home / Business and Economy / NCLAT Rejects Raheja Developers' Plea to Halt Insolvency
NCLAT Rejects Raheja Developers' Plea to Halt Insolvency
3 Apr
Summary
- Insolvency proceedings against Raheja Shilas project will continue.
- NCLAT cited unresolved issues with flat buyers as a reason.
- The appellate tribunal ruled that a settlement must be reached first.
The National Company Law Appellate Tribunal (NCLAT) has refused to halt the insolvency resolution process for Raheja Developers' Raheja Shilas project in Gurugram. This decision stems from unresolved disputes between the developer and over 40 flat buyers who initiated the proceedings.
NCLAT stated that an application to withdraw the Corporate Insolvency Resolution Process (CIRP) requires prior resolution of issues and a settlement agreement. The tribunal noted that flat buyers' representatives indicated that many issues with the corporate debtor remain pending.
Previously, the National Company Law Tribunal (NCLT) had ordered the initiation of CIRP against the realty firm on November 19, 2024. NCLAT later issued an interim order confining this process to the Raheja Shilas project, located in Sector 109, Gurugram.
The NCLAT directed the Resolution Professional to continue with the CIRP, including updating creditor claims. The tribunal also clarified that financial creditors and institutions concerning other Raheja Developers' projects are free to pursue separate legal actions independently.
