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NCLAT upholds NCLT order dismissing insolvency plea against Noida-based Logix Infrastructure
NCLAT upholds NCLT order dismissing insolvency plea against Logix Infrastructure, builder of the decade-old delayed Blossom County project in Noida Sector 137
The National Company Law Appellate Tribunal (NCLAT) has upheld a February 2025 order by the National Company Law Tribunal (NCLT), which cancelled the initiation of insolvency proceedings against Noida-based Logix Infrastructure, developer of the delayed Blossom County project in Noida Sector 137.
The tribunal called the IBC petition a fraudulent misuse of the insolvency law and recalled the corporate insolvency proceedings against Logix Infrastructure. It observed that Experts Realty Professionals and Logix were “related parties,” and the plea was merely “a guise” to shield the developer from financial liabilities.
The appeal was filed by Experts Realty Professionals, the financial creditor that started the corporate insolvency resolution process (CIRP).
"We find that the underlying loan agreement, commercial transaction, or financial debt was either fraudulent or malicious in nature. We find that there are clear fraudulent activities and collusion in the business transactions and (the NCLT) order under Section 65 (of IBC) is maintainable.” the tribunal order stated.
“Furthermore, it is to be noted that Logix candidly admitted debt and default without raising any objection. In the above background, we are compelled to come to the conclusion that this is nothing else but collusion between Logix and Experts Realty,” the order said.
With this new order, the ₹55 lakh penalty imposed earlier by NCLT, stayed during the appeal, must now be paid by Experts Realty to the Prime Minister’s National Relief Fund (PMNRF). The costs of Corporate Insolvency Resolution Process (CIRP) will also be borne by the financial creditor, the order said.
A bench of Justice N Seshasayee and Arun Baroka dismissed the appeal, saying: “The petition under the Insolvency and Bankruptcy Code (IBC) was fraudulent and aimed at protecting Logix from its dues to homebuyers and the Noida authority.”
Ketan Madan advocate on behalf of Experts Realty Professionals who filed a case against Logix, said on Sep 9 that “It’s a pervasive and completely misconceived order. We are going to challenge this order in the Supreme Court.”
The Logix case
The case concerns Blossom County, a 17-tower project with 2,384 units, launched in 2010. Only 10 towers have received occupancy certificates, leaving hundreds of buyers still waiting. The project was initially scheduled for completion in 2013. It has dues of more than ₹500 crore pending with the Noida Authority.
The case was based on an MoU signed on October 20, 2020. Experts Realty invested ₹15 crore in Logix’s project in return for 140,000 square feet of space, with a buy-back option. In December 2021, Logix acknowledged about ₹13 crore as liability, promising repayment within a month and interest of 18% per month on default, the Hindustan Times newspaper reported.
But the MoU and meeting records were not registered, stamped, or supported by collateral.
The NCLAT said that for such a large financial deal, safeguards and proper documents were expected. Their absence showed the deal was not a genuine loan but only meant to make Experts Realty appear as a financial creditor, the report quoted the order as saying.
The tribunal also noted overlapping roles of directors. Hemant Sharma, now with Logix, was earlier additional director in Experts Realty. He resigned on September 5, 2020, and joined Logix just six days later. His resignation was officially filed only in April 2021, after the MoU.
Sharma and Neeraj Gusain, director of Experts Realty, were also partners in another firm, New Greens Landkart LLP. Both signed the MoU on behalf of their companies. NCLAT said these connections showed the two companies were related parties under the IBC.
Experts Realty’s 2021 balance sheet listed the ₹15 crore as “current investments,” not a loan. Logix’s books showed a liability of ₹21.16 crore towards Experts Realty, which came down to nil by 2022. Still, Experts Realty filed an insolvency petition in April 2023, which NCLT admitted in July 2023.
Homebuyers opposed the plea
Homebuyers opposed the plea, alleging collusion. They said Logix had already sold all flats, collected payments, and diverted funds while leaving dues of over ₹500 crore to the Noida authority unpaid. By showing itself as a financial creditor, Experts Realty was trying to secure 21% voting rights in the Committee of Creditors (CoC), an influence it could not have had as a homebuyer.
On February 6, 2025, NCLT sided with the homebuyers, cancelled the admission order, and imposed a penalty. The NCLAT has now confirmed that ruling, saying the case was a clear misuse of the insolvency process.
Shakti Nath, promoter of Logix Infrastructure, told the Hindustan Times newspaper that, “We are no more associated with Logix Group. Mrityunjay Jha is the director.” Jha was not available for comments on the matter despite repeated calls.
