NCLAT Delhi Dismisses Homebuyers' Plea for CIRP Initiation Against Ansal Hi-Tech Township
The National Company Law Appellate Tribunal (NCLAT) in New Delhi, presided over by Justice M. Venugopal (Judicial Member) and Mr. Arun Baroka (Technical Member), has in the matter of Pankaj Mehta VS M/s. Ansal Hi-tech Township Limited, has dismissed the application filed by homebuyers under Section 7 of the Insolvency and Bankruptcy Code (IBC) seeking the initiation of Corporate Insolvency Resolution Process (CIRP) against Ansal Hi-Tech Township.
Background:
The appellant represents homebuyers who purchased flats between 2011 and 2012 in the Sushant Metropolis Township developed by Ansal Hi-Tech Township. The developer failed to deliver possession within the agreed timeframe, prompting the appellant to seek CIRP proceedings under Section 7 of IBC before the NCLT Delhi.
NCLT Delhi's Decision:
On January 6, 2023, NCLT Delhi rejected the appellant's application, stating that homebuyers from different projects within the Township must meet the minimum threshold requirement of 10% or 100 homebuyers for each project to initiate CIRP.
Appellant's Argument:
The appellant argued that Sushant Megapolis should be considered a single project, and NCLT Delhi misinterpreted Section 5(8) of IBC regarding RERA registrations.
NCLAT's Verdict:
NCLAT upheld NCLT Delhi's decision, emphasizing that homebuyers are associated with different projects, each registered separately under RERA. Hence, they fail to meet the threshold required for CIRP initiation.