The Delhi High court has summoned the directors of Ansal Properties and Infrastructure, in response to a plea by 126 buyers of Ansal API's real estate project, The Fernhill, located at Sector 91, Gurgaon. In their petition, they buyers had alleged defaults on the part of Ansal API in delivering the project within the promised time frame as well as the grace period provided under the clauses of the builders-buyers agreement. The directives stated that a status quo was to be maintained regarding title and possession of the properties including the plots in question. The court has summoned them stating that the real estate developer in coalition with a finance company have misled the court by manner of concealing material facts, and by acting in a manner so as to disregard and frustrate the orders of the court.
Following a November 2022 insolvency trial by the National Company Law Tribunal (NCLT) against Ansal Properties and Infrastructure, in response to a plea by 126 customers of Ansal API, the Delhi High court has now summoned the directors of the company, stating that the real estate developer in coalition with a finance company have misled the court by manner of concealing material facts, and by acting in a manner so as to disregard and frustrate the orders of the court.
The Delhi High court has summoned the directors of Ansal Properties and Infrastructure to explain why they have proceeded to conceal facts from the court so as to circumvent and mislead the bench. In a new order the directors have been directed to remain physically present in court in January 2023. On first impression, Ansal Properties and their finance company, RSD Finance are said to have concealed material facts pertaining to the case in an attempt to mislead the court and to frustrate its prior orders. The directives stated that a status quo was to be maintained regarding title and possession of the properties including the plots in question. However, the petitioners have alleged that third party rights were created by the developer in favour of the finance company.
Earlier, a petition was filed by 126 flat/villa buyers of Ansal API's real estate project, The Fernhill, located at Sector 91, Gurgaon. In their petition, they buyers had alleged defaults on the part of Ansal API in delivering the project within the promised time frame as well as the grace period provided under the clauses of the builders-buyers agreement. The Insolvency Tribunal of the NCLT stated that the applicants had succeeded in proving their debt and default in the part of the respondent, over and above the threshold limit and as such, admitted the plea to a two-member bench of the insolvency tribunal. As a result, it imposed prohibitions against any recovery under suits, transfer of property, disposal of assets of the real estate firm and others under the Insolvency and Bankruptcy code. For reference, Ansal API had promised to hand over the physical possession of the units under contention by July 2017. However, the units remain unfinished to date.
In the last financial year, 210 applications pertaining to the real estate sector were admitted for similar instances of insolvency under the Corporate Insolvency Resolution Process (CIRP). Of these 18 cases have been resolved, 60 have been settled or withdraw, and liquidation has been ordered in 63 of the cases. The process of resolution is ongoing in the remaining cases. The time taken for CIRP depends on several factors, including the nature of the business, business cycles, market sentiments and marketing efforts.
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