ET: NCLT initiates insolvency proceedings against Magic Info

14 September 2019: The National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution process against Magic Info under Section 7 of the Insolvency and Bankruptcy Code 2016.

The court has appointed Gaurav Katiyar as the interim resolution professional (IRP) for the case.

The buyers, through their advocates, Aditya Parolia and Piyush Singh, pleaded that they had booked apartments in Godrej Summit situated in sector 104, Gurugram in 2013 for over Rs 4.5 crore.

The project was to be delivered within a period of 47 months but the builder failed to do so. In 2019, the buyers demanded termination of agreement and refund of money along with 15% interest.

Magic Info in its plea said that there is no default on the part of the corporate debtor. They had offered possession in 2017 subject to fulfilment of contractual obligation by home buyers, hence there is no question of any default.

Buyers however contended that the builder failed to produce the occupation certificate of the tower for which possession was being offered.

NCLT however admitted buyer’s petition saying that while the ‘offer of possession’ was made in 2017, the effective possession has not been given to the buyers.

Godrej Summit was launched in a partnership of Godrej Premium Builders, a subsidiary of Godrej Properties and Magic Info. While Godrej Premium Builders was the developer, Magic Info was the land owner.

The Economic Times reported

Categories: General News, India Bankruptcy

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