NCLT initiates insolvency proceedings against Three C Projects

The National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution process against Three C Projects 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. It directed the IRP to make a public announcement. Buyers had booked apartments in company's Lotus Zing project in 2011. The project was to be delivered in 33 months from the date of agreement but the builder failed to do so. The builder made certain payments to the buyers as per the construction linked payment plan. Home buyers paid a total of Rs 1.41 crore (approx) to the builder, according to their plea filed in the court through their advocates Aditya Parolia and Piyush Singh of PSP Legal. Three C Projects in its petition said that there is no 'default' on their part and hence the petition of homebuyers is non maintainable. It further said that the project was delayed because of demonetisation, NGT's order and farmer's unrest and agitation. But NCLT rejected builder's petition and said that we are satisfied that default has occurred. It further ordered the builder that the supply of essential goods like supply of water, electricity to the buyer should not be terminated or suspended.