{"id":264930,"date":"2022-04-02T13:00:40","date_gmt":"2022-04-02T07:30:40","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=264930"},"modified":"2022-04-08T14:33:34","modified_gmt":"2022-04-08T09:03:34","slug":"nclt-initiates-insolvency-proceedings-against-logix-city-developers","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2022\/04\/02\/nclt-initiates-insolvency-proceedings-against-logix-city-developers\/","title":{"rendered":"Logix Insolvent? NCLT initiates insolvency proceedings against Logix City Developers"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>National Company Law Tribunal: <\/strong>The Coram of Bachu Venkat Balaram Das (Judicial Member) and Narender Kumar Bhola (Technical Member) initiates insolvency proceedings against Logix City Developers due to default in payment.<\/p>\n<p style=\"text-align: justify;\">The Operational Creditors, Colliers International (India) Property Services Private Limited sought an order to initiate the Corporate Insolvency Resolution Process of the Corporate Debtor viz., Logix City Developers Private Limited, declare\u00a0 moratorium and appoint Interim Resolution Professional.<\/p>\n<h4 style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Background<\/span><\/h4>\n<p style=\"text-align: justify;\">The Operational Creditor\u2019s case was that the parties entered into an agreement for providing construction for Bloom Zest Project at Noida and appointed the operational creditor as its project manager. On providing various services, the Operational Creditor raised various invoices and against some of the invoices raised, the Corporate Debtor being unable to pay its obligations allotted a residential unit to the Operational Creditor.<\/p>\n<p style=\"text-align: justify;\">Vide an email, the Corporate Debtor was requested to pay the Operational Debt. However, he failed to do so. Hence, a demand notice was issued to him.<\/p>\n<p style=\"text-align: justify;\">Corporate Debtor acknowledged and admitted its liability to pay the Operational Debt. Therefore, the present petition was filed.<\/p>\n<p style=\"text-align: justify;\">Corporate Debtor on realizing the prevalent real estate conditions caused due to COVID-19 pandemic, failed in paying the amounts as claimed by the Operational Creditor under Demand Notice. Further, it stated that the delay in payment of installment amounts was due to the fact that the construction of the said project was stopped due to various EPCAJ NGT Orders and thereafter unprecedented conditions created due to COVID-19 Pandemic.<\/p>\n<p style=\"text-align: justify;\">Additionally, the Corporate Debtor stated that it is an indisputable fact that the Real Estate Business is going through slump whereby all the builders and promoters of the real estate projects are experiencing heavy economic losses.<\/p>\n<h4 style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Analysis and Decision<\/span><\/h4>\n<p style=\"text-align: justify;\">Tribunal found that the Corporate Debtor failed to discharge its liability as the admitted amount remained unpaid as on date.<\/p>\n<blockquote>\n<p style=\"text-align: justify;\"><span style=\"color: #008000;\">\u201c\u2026this authority has to only satisfy itself regarding default in payment by the corporate debtor towards the operational creditor and there is no pre-existing dispute\u201d<\/span><\/p>\n<\/blockquote>\n<p style=\"text-align: justify;\">In the present matter, the above two conditions are fulfilled, hence it deserves to be admitted. Therefore, the Tribunal initiated the CIR Process of Corporate Debtor.<\/p>\n<p style=\"text-align: justify;\">Tribunal appointed Insolvency Resolution Professional Yogesh Kumar Gupta as Interim Resolution Professional as proposed by the Operational Creditor.<\/p>\n<p style=\"text-align: justify;\">Further, Moratorium was declared which shall have effect from this Order till the completion of CIRP for the purposes referred to in Section 14 of the IBC, 2016. [Colliers International (India) Property Services (P) Ltd. v. Logix City Developers (P) Ltd., <a href=\"http:\/\/www.scconline.com\/DocumentLink\/T518aZFq\"><b>2022 SCC OnLine NCLT 37<\/b><\/a>, decided on 22-3-2022]<\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><strong>Advocates before the Tribunal:<\/strong><\/p>\n<p style=\"text-align: justify;\">Operational Creditor: Adv. S. Sriranga, Adv. Balaji Srinivasan, Adv. Garima Jain and Adv. Gayatri Mohite<\/p>\n<p style=\"text-align: justify;\">Corporate Debtor: Adv. Vijay Kaundal<\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Company Law Tribunal: The Coram of Bachu Venkat Balaram Das (Judicial Member) and Narender Kumar Bhola (Technical Member) initiates insolvency proceedings <\/p>\n","protected":false},"author":8808,"featured_media":162604,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[30596,31402,6121,30597,3301,49037,12521,33073,4132],"class_list":["post-264930","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-corporate-debtor","tag-demand-notice","tag-insolvency","tag-insolvency-resolution-professional","tag-liability","tag-logix-city-developers","tag-nclt","tag-pre-existing-dispute","tag-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Logix Insolvent? 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