The National Company Law Tribunal (NCLT) based in New Delhi, comprising Shri Bachu Venkat Balaram Das (Judicial Member) and Shri Atul Chaturvedi (Technical Member), has granted approval for the resolution plan presented by M/s. Ace Infracity Developers Pvt. Ltd. concerning Three C Homes Pvt. Ltd. This resolution plan, valued at approximately Rs. 140 crores, has been accepted by the NCLT in response to a petition filed by Mr. Arun Kumar Sinha against M/s. Three C Homes Pvt. Ltd.
M/s. Ace Infracity Developers Pvt. Ltd. intends to complete the development of the plots in the ‘Lotus City’ project within a span of 24 months and subsequently transfer them to the rightful allottees. Additionally, the resolution applicant plans to seek re-registration of the ‘Lotus City’ project under the Real Estate Regulatory Authority (RERA) for the purpose of ensuring the project’s successful completion.
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The Corporate Debtor, M/s. Three C Homes Private Limited, engaged in the real estate development business, had leased land from the Yamuna Expressway Industrial Development Authority (YEIDA) to execute the ‘Lotus City’ project. This land was originally acquired by YEIDA from local farmers.
A petition was filed by the Financial Creditor, Mr. Arun Kumar Sinha, under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), leading to the initiation of the Corporate Insolvency Resolution Process (CIRP) for the Corporate Debtor in 2019. The Committee of Creditors (CoC) approved the resolution plan submitted by M/s. Ace Infracity Developers Pvt. Ltd., attaining a 100% voting share.
The resolution plan’s fair value for the Corporate Debtor is estimated to be around Rs. 600 crores, while the liquidation value stands at approximately Rs. 480 crores.
The approved resolution plan, valued at Rs. 140,39,27,000/-, does not entail any claims from operational creditors, resulting in no payment being allocated to them. The Promoters and related parties of the Corporate Debtor presented claims based on loans provided to the Corporate Debtor. However, due to the lack of loan agreements or supporting documents for verification, these claims were categorized as “other claims.” As per the resolution plan, these “other claims” will not be settled from the resolution amount but will be addressed in accordance with the law.
In terms of compensation to the farmers, the Successful Resolution Applicant (SRA) has committed to providing 100% of the principal amount, equivalent to Rs. 71.66 crores, which is included in the total payment of Rs. 173.46 crores agreed to be made to YEIDA.
Furthermore, the SRA has pledged to complete the development work of the plots in the Lotus City Project and deliver the units to the allottees. The resolution plan remains valid for a period of 24 months, ensuring the successful closure and handover of the project. Additionally, the SRA intends to pursue re-registration of the project with RERA to ensure its proper completion.
YEIDA raised objections against the plan proposed by the SRA, citing that the plan only offered to pay Rs. 67.12 crores out of the total dues of Rs. 506 crores outlined in the Lease Deed. Moreover, YEIDA expressed concerns that the resolution plan allowed the Resolution Applicant to benefit from and develop a public asset without assuming any burden, which was deemed prejudicial to public interest.
However, the Bench of the NCLT dismissed YEIDA’s objections, stating that the resolution plan adequately addressed the concerns raised by YEIDA, despite no claims being filed. The Bench further noted that the plan had received a 100% voting share from the CoC, signifying their commercial wisdom and rendering any interference unnecessary.
Therefore, the NCLT has granted its approval to Ace Infracity Pvt. Ltd.’s resolution plan for Three C Homes Pvt. Ltd., marking a significant milestone in the ongoing insolvency proceedings of the company.
