NCLAT Limits Insolvency Proceedings to Gurgaon Project 'Aspirations'
The National Company Law Appellate Tribunal (NCLAT) has confined the insolvency proceedings against Vatika to its Gurgaon-based Project 'Aspirations'. While confirming the debt and default, the tribunal restricted the Corporate Insolvency Resolution Process (CIRP) to this project only, modifying an earlier NCLT order.
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The National Company Law Appellate Tribunal (NCLAT) has provided significant relief to real estate firm Vatika by restricting the insolvency proceedings to its Gurgaon-based project, 'Aspirations'.
This modification of an earlier National Company Law Tribunal (NCLT) order ensures that the Corporate Insolvency Resolution Process (CIRP) does not affect Vatika's other projects, a decision undertaken after confirming the debt and default by the company.
In a detailed judgment, the NCLAT stated that while the initiation of CIRP against Vatika is valid, it should be confined to the specific project in Sector 88 B, Gurgaon, as outlined in the Debenture Trust Deed. Stakeholders are now required to update their claims related to this project.
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