NCLT initiates insolvency proceedings against AVP Buildtech

The National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution process against Delhi-based AVP Buildtech under Section 7 of the Insolvency and Bankruptcy Code 2016. The court has appointed Manish Kumar Gupta as the interim resolution professional (IRP) for the case. The buyers through their advocates Aditya Parolia and Piyush Singh of PSP Legal pleaded that they have booked an apartment in AVS Orchard in 2012. The total cost the apartment was Rs 75.56 lakh inclusive of IFMS and one covered parking. The petitioner has claimed Rs 69.65 lakh as due incuding compensation for delay. The project was to be completed by March 2014 with a grace period of three months but the project is yet to be delivered. The builder pleaded that due to the prolonged litigation in Allahabad High Court they were in no position to resume the construction work. The site was illegal occupied by the villagers and the buyer defaulted in various payments. They even offered alternate apartment to the buyers. The court said that a reasonable period of delay of six months to one year might be acceptable however the project is yet not complete which is a delay of over 5 years.