Debt

Debt Financing

NCLAT stays liquidation of Three C Homes; asks NCLT to consider options

Business Standard  

The National Company Law Appellate Tribunal (NCLAT) has set aside NCLT's direction to liquidate Three C Homes and ordered that other options be considered for resolution of the debt-ridden realty firm. The appellate tribunal said liquidation should be the last resort for insolvency resolution process of any residential project and asked NCLT to review its direction. The New Delhi bench of the National Company Law Tribunal (NCLT) had rejected the resolution plan of Ace Infracity Developers for Three C Homes and directed its resolution professional (RP) Gaurav Katiyar to initiate the liquidation process by filing an application before it. NCLAT said though a resolution plan will generally provide a higher value than liquidation value, in case of real estate projects it may not be always feasible.