NOIDA: The national company law tribunal has started corporate insolvency resolution process against ATS Knightsbridge project, a luxury project located in Noida's sector 124.
The NCLT has appointed an interim resolution professional after the builder, ATS, failed to pay dues on time, said the order.
The ASK Trusteeship Services Private Limited representing ASK Real Estate Special Opportunities Fund and ASK Real Estate Special Opportunities Fund II in capacity of being its investment manager, ASK India Real Estate Special Opportunities Fund PTE Ltd and ASK Investment Managers Limited (collectively referred to as “ASK Entities/Petitioners”) initiated corporate insolvency resolution professional process against realty firm ATS Heights Private Limited that is developing Knightsbridge project.
ATS Heights Private Limited allegedly defaulted in payment of R285 crore and R47 crore to the lender thus inviting the CIRP, said the order.
"For the reasons stated therein, the application is allowed and the name of newly proposed interim resolution professional (IRP) Gaurav Katiyar having Registration No: IBBI/IPA001/IP-P00209/2017-18/10409 is taken on record as an IP proposed by the petitioners to appointed as IRP," said the NCLT bench of justice Ashok Kumar Bhardwaj and Subrata Kumar Dash member technical delivered the order on April 22, 2024.
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{{/usCountry}}"The prayer made in the captioned petition is that the construction work should not be hampered and the home buyers should not be adversely affected. We have already passed an order in this regard in C.P (IB)-570/ND/2023.Nevertheless, it is further directed that the IRP would ensure that the project continue and construction work is not hampered. The suspended promoters/management of corporate debtor would ensure full compliance of Section 19(1) of IBC, 2016," said order.
The ATS promoter Getamber Anand argued that it was no default on the company's part because R285 crore or R47 crore was not a 'debt as it was an equity'. But the NCLT went on admitting the plea and started the CIRP considering the default commissioned by the realty company.
"Thus, even the non-payment of a part of debt when it becomes due and payable will amount to default on the part of a corporate debtor. In such a case, an order of admission under Section 7 IBC must follow. If NCLT finds that there is a debt, but it has not become due and payable, the application under Section 7 can be rejected. Otherwise, there is no ground available to reject the application..." said order.
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The ATS Group had in 2012 bought 11.5 acres land for 604 crore from another Noida based realty firm Logix Group. The developer was supposed to develop 60% commercial and 40 residential on this land located along Noida-Greater Noida Expressway.
In May 2016, the Noida authority had approved building layout maps and then allowed the construction in this project measuring 11.5 acres in sector 124. The ATS was supposed to develop residential first in phase I and then the commercial development was supposed to be started. The building consists of 5 towers of 47 storeys in the residential phase. The developer has partially developed the residential towers.
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"We are talking to the entities, which have filed the petition to initiate the CIRP against our company. Hopefully the matter will be settled amicably any time. Also the important thing is that the issue was not related to debt or default. It was equity that was invested in the company. Therefore, the issue will be resolved," said Getamber Anand promoter of ATS Group.