10 September 2019: The National Company Law Appellate Tribunal on Monday directed the interim resolution professional of insolvency-bound Umang Realtech not to constitute a committee of creditors till its further orders, and said buyers may settle dispute with the company.
A two-member NCLAT bench, headed by Chairperson Justice S J Mukhopadhaya, directed this to facilitate two flat buyers, who are financial creditors of the realty firm, to settle the matter with Umang Realtech.
“Until further orders, the IRP will not constitute CoC, if not yet constituted to enable the Appellant … to settle the matter,” said the NCLAT.
It further said that the IRP will ensure that the realty firm remains a going concern and the construction of the building continues in its full swing.
“If necessary, IRP will take help and advice of the (Suspended) Board of Directors to ensure that the construction will be completed within time frame as considered by the Promoter,” said NCLAT.
The appellate tribunal has also allowed the promoter/ suspended board of directors to file intervention petition with the stand taken by them.
It has posted the matter on September 25 for orders.
Earlier, the Delhi-based Principal bench of the National Company Law Tribunal (NCLT) had on August 20, 2019 directed to initiate ‘Corporate Insolvency Resolution Process’ against ‘Umang Realtech.
This was challenged before NCLAT by a group of allottees – Flat Buyers Association Winter Hills-77, Gurgaon – contending that the project in question, will be completed by the end of Diwali (October, 2019).
According to them, just because of the plea of two allottees, insolvency was triggered.