The Mumbai bench of the NCLT had admitted the company under the Corporate Insolvency Resolution Process (CIRP) last year after the company defaulted on dues of Rs 286 crore, based on a petition filed by IDBI Trusteeship Services on behalf of Altico Capital. was filed.
Another financial creditor SREI Equipment Finance and a homebuyer had separately opposed the withdrawal of insolvency proceedings against the company.
Advocate Darshit Dave of law firm AVP Partners, appearing for the company’s other financial creditor Srei Equipment Finance, had objected to the withdrawal of CIRP against Nirmal Lifestyle.
The Kolkata-based lender, through its counsel, had argued that the developer owed the company more than Rs 100 crore and a similar petition is pending before another bench in the NCLT.
“Withdrawal of CIRP will adversely affect all stakeholders including homebuyers,” argued Dave, on behalf of Srei Equipment Finance.
However, the NCLT Mumbai Bench has observed that these objections were not sustainable while allowing the withdrawal of the insolvency proceedings.
When contacted, Ashok Paranjpe, managing partner of law firm MDP & Partners on behalf of Nirmal Lifestyle, confirmed the development, but declined to divulge any details.
A division bench of the tribunal headed by judicial member HV Subba Rao and technical member Chandrabhan Singh passed the order on Monday.
As per the tribunal’s order last year, the Mumbai-based builder had approached Altico Capital to extend refinance facilities worth around Rs 300 crore through non-convertible debentures (NCDs).
Nirmal Lifestyle had also taken a term loan of Rs 1,120 crore from Altico and issued a guarantee in respect of term loan of Rs 1,280 crore by another associate firm Nirmal Lifestyle Holdings on March 27, 2019. The company had now defaulted on this guarantee. ,
Passing the order last year, the court had taken note of the submission of Nirmal Lifestyle that the company is in the process of settling the claims of all the creditors and some time may be given.
Promoted by Dharmesh Sardarmal Jain, Nirmal Lifestyle has a prominent presence in Mulund, a central suburb of Mumbai. In 2012, the builder partnered with the United States Tennis Association (USTA) to develop US Open branded residences in Mulund.
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