In a recent development, the National Company Law Tribunal (NCLT) has granted approval to Ace Infracity's resolution plan for 3C Homes. This comes after the NCLT initially denied approval due to opposition from some of the allottees. The matter was subsequently taken to the National Company Law Appellate Tribunal (NCLAT), which has now remanded the case back to the NCLT with specific instructions. The resolution plan aims to address the challenges faced by 3C Homes and pave the way for its successful restructuring and revival.
Ace Infracity Developers has received approval from the National Company Law Tribunal (NCLT) for its resolution plan to revive financially troubled 3C Homes. The Committee of Creditors (CoC) overwhelmingly supported the plan, which the NCLT deemed reflective of the lenders' "commercial wisdom" and binding on all stakeholders. This decision follows previous rejection by the NCLT, which was appealed and subsequently referred to the NCLT by the NCLAT with specific instructions.
The resolution plan, approved by NCLT, includes the payment of the full principal amount of Rs 71.66 crore as compensation to the Yamuna Expressway Industrial Development Authority (YEIDA). The plan also encompasses development and delivery of 512 residential plots in the Lotus City project, valued at Rs 211 crore, to the allottees. The NCLT, in a 27-page order, expressed satisfaction that the plan addresses concerns related to outstanding dues and land acquisition raised by the NCLT itself.
Within a timeframe of 24 months, the resolution plan stipulates that the plots must be developed and handed over to allottees. The Monitoring Committee will oversee the progress until the project's completion, and Ace Infracity Developers is required to obtain re-registration with the Real Estate Regulatory Authority (RERA) to ensure compliance.
The two-member NCLT bench approved the resolution plan, acknowledging its adherence to the provisions of the Insolvency and Bankruptcy Code (IBC) and compliance with the regulations set forth by the Insolvency and Bankruptcy Board of India (IBBI). The plan's implementation takes immediate effect, terminating the moratorium imposed under section 14 of the Code.
As part of the approval, NCLT directed the Resolution Professional (RP), Gaurav Katiyar, to submit the collected records to the IBBI for record-keeping purposes. Ace Infracity Developers has been given a one-year timeframe, in line with section 31(4) of the Code, to fulfill statutory obligations and seek approvals from government authorities.
The Corporate Insolvency Resolution Process (CIRP) for Three C Homes Pt Ltd was initiated by the NCLT on September 6, 2019, appointing Katiyar as the Interim Resolution Professional (IRP). Following a competitive bidding process, Ace Infracity Developers, in a joint venture with Ashiana Housing, emerged as the eligible prospective Resolution Applicant, gaining approval from the CoC.
According to the application, the fair value of Three C Homes is Rs 600.87 crore, with liquidation value of Rs 480.70 crore. On February 8, 2021, the NCLT initially rejected RP's plea for approval of the resolution plan, citing objections from some project's allottees. This decision prompted the Home Buyer's Association to challenge it at the NCLAT.
Upon review, the NCLAT instructed NCLT to address the concerns raised by the homebuyers within the approved resolution plan and engage the Yamuna Expressway Industrial Development Authority to resolve the dispute with the farmers. Additionally, the Lotus City Plot Buyers Welfare Association and YEIDA filed an appeal before the Supreme Court. On April 17, 2023, the Supreme Court directed the NCLT to consider the plan approval application and issue necessary orders, leading to the current approval granted by the NCLT.
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