ET: SC orders status quo in Emaar MGF Land’s insolvency case

28 February 2019: The Supreme Court on Tuesday ordered all parties involved to maintain status quo in the case related to the insolvency of Emaar MGF Land.
The order comes after home buyers through their counsel advocate Aditya Parolia and advocate Piyush Singh filed an appeal before the apex court. “We moved to SC after Emaar started making exorbitant demand to home buyers in lieu of the order it received from NCLAT on February 1, 2019,” said Parolia.

On January 24, 2019, NCLT-Delhi initiated corporate insolvency resolution process (CIRP) against Emaar MGF Land. However, on February 1, 2019 Hadi Mohd Taher Badri, director of Emaar MGF Land, moved National Company Law Appellate Tribunal (NCLAT) informing them that they have settled the case with the home buyer which filed the insolvency case.

Badri further appealed that since the insolvency resolution professional has not yet formed the committee of creditors and has not issued any public announcement, it should also be disposed off.

Home buyers, however, pleaded that the company should settle the case with all the buyers and not just one.

NCLAT on hearing both the petitions allowed Emaar MGF Land one chance to settle the case with the buyers. It also ordered the IRP to not issue any public announcement or constitute the committee of creditors until further order.

“Emaar however misinterpreted the order and sent emails to home buyers to take possession after clearing their exorbitant demands,” said Parolia. Hence we moved to SC, he added.

The Economic Times reported

Categories: General News, India Bankruptcy

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