NCLT terminates insolvency resolution process against Logix Infra

NCLT has directed the resolution professional to return the management control of the firm to ex-management and also ended the moratorium period given to the realty firm

NOIDA: The national company law tribunal (NCLT) has terminated the ongoing corporate insolvency resolution process (CIRP) against the realty firm - Logix Infrastructure private limited - that was facing the proceedings since 2023.

The February 6 order also termed all decisions taken by resolution professional Pawan Kumar Goyal after his appointment as “null and void”. (Sunil Ghosh/HT Photo)

In its 20-page order, delivered on Thursday (February 6), the NCLT has directed the resolution professional to return the management control of the firm to ex-management and also ended the moratorium period given to the realty firm.

The NCLT while allowing IA 6541 (the plea)with costs, terminated the admission order that was delivered on July 14, 2023 that paved the way for initiation of the CIRP against Logix Infra.

The February 6 order also termed all decisions taken by resolution professional Pawan Kumar Goyal after his appointment as “null and void”. He remained unavailable for a comment despite repeated attempts made by HT.

The NCLT order that came in response to plea filed by homebuyers said: “…Having regard to the facts and circumstances of the case, we are constrained to recall and set aside the admission order dated 14.07.2023 secured by the Financial Creditor, Experts Realty Professionals Private Limited in IB-237(ND)/2023 in relation to the Corporate Debtor, Logix Infrastructure Private Limited in exercise of powers conferred under Rule 11 of the NCLT Rules, 2016 to meet the ends of justice. In view thereof, the order of admission dated 14.07.2023 and the CIRP initiated thereof in relation to the Corporate Debtor, M/s.Logix Infrastructure Private Limited is cancelled and terminated. The moratorium as declared under Section 14 of IBC, 2016 also stands withdrawn.”

“The appointment of the Resolution Professional and all the actions taken by the Resolution Professional consequent to his appointment are brought to nullity,” it added.

About the legislature incorporating Section 65 of the Code, enabling the Adjudicating Authority to impose a penalty on anyone initiating the insolvency resolution process or liquidation proceedings fraudulently, the order said: “The present application is a gross abuse of the process of law. We, therefore, impose a penalty of ₹500,000 to be deposited by the Financial Creditor, Experts Realty Professionals Private Limited in the Prime Minister’s National Relief Fund within 10 days from the date of passing of this order”

The homebuyers had sought termination of the CIRP and withdrawal of July 14, 2023 order because it (CIRP plea in 2023) has been filed with fraudulent and malicious intended to defraud Tribunal, creditors and the allottees.

“We welcome this order because it is a beginning to get justice for the buyers… Logix Group has planned the CIRP to evade action from the Noida authority and also restrain homebuyers from getting the registry done of their units. The directors of the Logix Group have defrauded the homebuyers,” said Manoj Prasad, president of apartments owners association of Logix Blossom County society, Sector 137.

Logix Group promoter Shakti Nath said, “We sold off and transferred this company to Rupinder Malik and Mritunjay Jha who will answer the questions in this matter.”

Malik did not take calls and Mritunjay Jha was unavailable for a comment despite repeated attempts.

The buyers said that Experts Reality Professionals Pvt Ltd had moved the NCLT against Logix Infrastructure Pvt Ltd, seeking outstanding dues as a financial creditor. But homebuyers filed plea against the CIRP to bring out the truth about the conflict of interest of directors of both Logix Infrastructure and Experts Reality Professionals.

The Logix Blossom County community has been fighting for justice against the Noida authority and Logix Group for a long time.

Logix Blossom County comprises 2,381 flats across 17 towers. However, only 10 towers have been granted occupancy certificates by the Noida authority. The remaining seven towers remain uncertified. Despite failing to meet the required conditions, the builder unlawfully offered possession in these seven towers without obtaining the necessary OCs.

The authority has stalled the execution of registry in the entire society due to pending builder dues of around ₹400 crores.