NCLT Asks HDIL Homebuyers to Submit Claims to IRP Before 8th September

Moneylife Digital Team 31 August 2019

Economy & Nation

The National Company Law Tribunal (NCLT) has ordered corporate insolvency resolution process of debt-ridden real estate major Housing Development and Infrastructure Ltd (HDIL), asking homebuyers to submit their claims for dues to the interim resolution professional (IRP) by 8 September 2019.

"The creditors of HDIL are hereby called upon to submit their claims with proof on or before 8th September to the IRP," said a public announcement made by the resolution professional.

The debt-ridden realty company has appointed Abhay Narayan Manudhane as the interim resolution professional (IRP) to run the insolvency proceedings.

Here is the notice issued by Mr Manudhane, the IRP for HDIL...

HDIL's downfall is a pointer to the crisis the real sector is going through.

On 21 August 2019, HDIL shares had plunged a huge 20% to hit an all-time low of Rs8.78 on the BSE, its highest daily percentage loss since October 2008, after the real estate firm was admitted under the provisions of Insolvency and Bankruptcy Code (IBC). HDIL shares have plunged further since then.

The public announcement has been made under Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

The NCLT had earlier passed an order saying that the cash-strapped HDIL will face insolvency proceedings under the provisions of the IBC. The order came in response to a plea filed by public sector lender Bank of India.

Bank of India had filed an application with the Mumbai bench of the NCLT after the realtor failed to repay dues to the tune of Rs522 crore. Besides Bank of India, HDIL also faces resolution pleas by Corporation Bank, Syndicate Bank, Indian Bank and Dena Bank.

In a regulatory filing to the BSE, the Mumbai-based realtor said that it has been admitted under the provisions of IBC as per an order passed by the NCLT pursuant to an application filed by Bank of India under Section 7 of IBC.

The company also informed the exchange that it planned to challenge the NCLT order, adding that it was under the process of filing an appeal with the National Company Law Appellate Tribunal (NCLAT).

"The company is under the process to file an appeal with NCLAT against the order passed by the National Company Law Tribunal," HDIL said in the regulatory filing.

HDIL further stated that an IRP has been appointed to carry out the functions as mentioned under the IBC.

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