NCLT directs to initiate insolvency proceedings against real estate firm Ajnara

The National Company Law Tribunal (NCLT) has directed to initiate insolvency proceedings against Ajnara Ltd and appointed an interim resolution professional for the NCR-based real estate developer.

A two-member New Delhi-based bench held the insolvency petition filed on behalf of 113 allottees of Ajnara Ambrosia as maintainable and as per the builder-buyer agreement, it was bound to give possession within three years of booking.

"The corporate debtor has defaulted in handing over the units to the respective home buyers/allottees as per the terms of the builder-buyers agreement," said NCLT.

The NCLT bench said its a "fit case" for admission of insolvency petition against Ajnara.

"In the given facts and circumstances, the present Application being complete and the applicants/Financial Creditors having established the default on the part of the Corporate debtor in payment of the financial debt being committed above the threshold limit, the present Application is admitted," it said.

As a necessary consequence of the moratorium, NCLT also imposed prohibitions against recovery from suits against the company and transferring, encumbering, alienating or disposing of assets to foreclose or recover any amount.

The matter is related to a project 'Ajnara Ambrosia' located at sector 118, Noida, where the real estate firm was constructing a group housing society.

Ajnara Ambrosia was a plotted residential society and as per the terms and conditions, it had obligation to hand over the possession within a period of three years.

It has also taken advance from the 113 flat owners of Rs 50.47 crore but failed to fulfil its commitment and handover the possession.

After this, the buyers issued a notice and then moved to NCLT.

This was opposed by the real estate firm and said the present petition was not maintainable and time-barred. Moreover, it was only a sale and purchase and there was no borrowing hence the petitioner does not fall under the category of financial creditors.

However, it was rejected by the NCLT and said the applicants in the present case are the financial creditors and the objection to it was not maintainable.