National Company Law Appellate Tribunal (NCLAT) has rejected the petition filed by four unit buyers of Parshvanath Landmark Developers to initiate insolvency proceedings against the subsidiary of Parshvanath Landmark Developers. The Appellate Tribunal overruled the National Company Law Tribunal (NCLAT)NCLT) upheld the orders of the Principal Bench of the Supreme Court, which had dismissed their petition on October 17, 2023, on technical grounds as the number of petitioners was only four, while the total number of allottees by Parshvanath Landmark is 488. The matter is related to the real estate company’s Delhi-based project La Tropicana Khyber Pass.
The arguments of the flat buyers were also rejected
Moreover, the appellate tribunal also rejected the plea of the flat buyers that they belong to a different class and an order of Delhi RERA directed the developer to return the amount with interest on October 22, 2022. The developer was liable to return the amount within 45 days of the order, but no amount was paid. Thus, it had committed default by not returning Rs 24.14 crore to each petitioner along with 10 per cent interest.
Reference to Supreme Court decision
According to them they are not financial lenders in the category of real estate allottees but financial lenders in the category of decree holders. However, the NCLAT rejected the arguments citing the Supreme Court judgment in which the apex court had held that the status of allottees as “financial creditors” does not change.
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