The National Company Law Tribunal (NCLT) on Monday dismissed a plea by real estate firm Wave Megacity Centre to initiate insolvency proceedings against itself.
A two-member NCLT bench comprising members Bhaskara Pantula Mohan and Hemant Kumar Sarangi rejected the plea for initiation of corporate insolvency resolution process (CIRP).
The order was pronounced in the open court and a detailed judgement is still awaited.
- Wave Megacity Centre Ltd, which is developing commercial and residential projects in sectors 25A and 32 of Noida, Uttar Pradesh.
- Wave Megacity Centre had in March 2021 approached NCLT under Section 10 of the Insolvency & Bankruptcy Code (IBC).
- Section 10 of IBC allows a debtor to initiate insolvency resolution process against itself if it has committed any default.
- The realty firm, in its petition filed last year, had claimed that it had to pay an amount of Rs 1,222.64 crore to Noida Authority and it was unable to clear the dues.
- According to the petition filed by the company, it had a loss of Rs 875.62 crore in FY 2019-20, and provisional loss of Rs 232.53 crore in FY 2020-21.
A spokesperson of Wave Megacity Centre said “The tribunal has just pronounced the order. We will evaluate the order and will approach the appropriate court for the next course of action. Our utmost priorities remain to protect the home-buyers interest, which we will continue to endeavour,” .
The company has to provide its books of account and such other documents relating to the period specified in its petition.
Source: MoneyControl.com
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