Another NCR-based real estate company on the brink of bankruptcy? NCLT Begins Insolvency Proceedings | Real estate news
New Delhi: The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Ananda Divine Developers, a spin-off company from NCR-based property company ATS Infrastructure.
A main bench of two Delhi-based NCLT members had on March 25 admitted a plea filed by ICICI Prudential Venture, claiming a claim of Rs 25 crore.
The insolvency court appointed Harish Taneja as an interim resolution professional to take over management of the business while suspending the board of directors of Ananda Divine Developers.
Meanwhile, ATS Infrastructure, in a statement, said it has resolved the dispute with ICICI Prudential Venture and will soon file a settlement.
“We have received a copy of the order and are in the process of reviewing the same,” said Getamber Anand, CMD of ATS Group, adding “We have mutually closed this dispute with ICICI Prudential Venture and will be filing a settlement soon.” .
In its 20-page order, the NCLT observed that the property company is liable to pay ICICI Prudential Venture, the financial creditor, a total outstanding sum of Rs 25.46 crore as of November 20, 2020, which includes default IRR (Internal Return Rate).
“Therefore, by not paying the outstanding amount, which has become due, the debtor legal person has committed an event of default under the terms of the investment agreement and a default under the terms of the provisions of the code”, said the bench composed of President R. Sudhakar and AK Srivastava.
The NCLT also observed that in this case, Ananda Divine has not filed any written response or submission so far.
“However, in view of the debt and default clearly set forth in Part IV of the Section 7 motion, this bench is inclined to grant this motion,” the NCLT said in its order passed March 25, 2022. .
Under Section 7 of the Insolvency and Bankruptcy Code (IBC), a financial creditor may initiate insolvency proceedings against the debtor company concerned.
On July 24, 2014, Ananda Divine Developers along with its promoter ATS Infrastructure and Getamber Anand, also a promoter and personal guarantor, had signed an investment agreement, under which ICICI Prudential Venture invested Rs 75 crore by subscribing 75 lakh debentures having a face value of Rs 100.
The debenture and bonds were secured by a mortgage on a 14-acre plot of ATS Triumph Land located at Sector 104 in Gurgaon.
The debenture bore interest at 14% per annum and was to be repaid no later than September 30, 2018.
Ananda Divine Developers paid the first installment of Rs 92.50 crore on December 30, 2107, towards the principal amount of Rs 65.62 crore.
However, a default had occurred for the remaining 9.37 crore debentures on March 31, 2018, and a notice was issued.
Again, another notice was issued on December 11, 2019, stating that if the real estate company does not make payment within the specified time, then they will be required to make payment for the amount of the current subscription as well than a default internal execution rate (IRR) of 30 percent.
Later, a notice was issued on October 26, 2020, in which the financial creditor demanded a due of Rs 25.16 crore.
After not being paid, the financial creditor moved to NCLT.
According to the company, the related project is completed and handed over. Also Read: TCS Technician Becomes Zomato’s Agent; shares pain points of delivery partners in a warm post on LinkedIn
“The amount envisaged is a very small sum, and the related project is completed and handed over. It will not affect our other projects,” Anand said. Also Read: Zomato and Swiggy Face Temporary Outages; customers unable to order food online