07 , June , 2022
A plea by real estate firm Wave Megacity Centre to initiate insolvency proceedings against itself has been dismissed by the National Company Law Tribunal (NCLT) on Monday. The plea was rejected by a two-member NCLT bench comprising members Bhaskara Pantula Mohan and Hemant Kumar Sarangi.
The realty firm, which is developing commercial and residential projects in sectors 25A and 32 of Noida, Uttar Pradesh, said it will evaluate the NCLT order and decide the next course of action.
The order was pronounced in the open court and a detailed judgement is still awaited.
In March 2021, Wave Megacity Centre had approached NCLT under Section 10 of the Insolvency & Bankruptcy Code (IBC). Section 10 of IBC allows a debtor to initiate insolvency resolution process against itself if it has committed any default.
Wave Megacity Centre, in its petition filed last year, had claimed that it had to pay an amount of Rs 1,222.64 crore to Noida Authority and it was unable to clear the dues. On being contacted, a spokesperson of Wave Megacity Centre said it will evaluate the NCLT order and decide the next course of action.
"The tribunal has just pronounced the order. We will evaluate the order and will approach the appropriate court for the next course of action. Our utmost priorities remain to protect the home-buyers interest, which we will continue to endeavour," the spokesperson stated.
The company has to provide its books of account and such other documents relating to the period specified in its petition. The NCLT, within 14 days of the receipt of such petition, has to pass an order admitting or rejecting it. However, the matter kept getting delayed due to opposition from the flat owners and property buyers.
As per the petition filed by the company, it had a loss of Rs 875.62 crore in FY 2019-20, and provisional loss of Rs 232.53 crore in FY 2020-21.
(WITH INPUTS TAKEN FROM PTI)
