NCLAT Reopens Insolvency Case Against Raheja Developers
In a move that raises questions on the solvency of another real estate developer in the national capital region, the National Company Law Appellate Tribunal (NCLAT) has directed the National Company Law tribunal (NCLT) to admit an insolvency plea against Delhi-based Raheja Developers. The Delhi bench of the NCLT had earlier dismissed the plea by one of Raheja’s operational creditors, Ahluwalia Contracts, on the ground of 'disputed claim.'
"We set aside the impugned judgment dated September 19, 2018, and remit the case to the Adjudicating Authority for admitting the application under Section 9 after notice to the 'corporate debtor' to enable the corporate debtor to settle the matter prior to the admission," said NCLAT said in its order. Section 9 of the insolvency code empowers operational creditors to initiate insolvency proceedings against a company in case it defaults. The developer owes Ahluwalia Contracts Rs 6.5 crores in dues for providing plumbing and civil works’ services. According to Ahluwalia Contracts, Raheja Developers did not pay the dues despite the former sending several notices. The developer on the other hand, claims that the quality of work provided by the contractor was poor, and they suffered losses owing to that, based on which they rejected payment demands.