August 31, 2019

Submit pending dues from HDIL by Sept 8, NCLT to lenders

[ by Legal Era News Network ]


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 the lenders to submit their dues claims by September 8.

“The creditors of HDFI are hereby called upon to submit their claims with proof on or before September 8, 2019, to the interim resolution professional,” said a public announcement made by the resolution professional, adding that financial creditors too will submit their claims.

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

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

On August 21, HDIL’s shares had plunged a huge 20 per cent to hit an all-time low of Rs 8.78 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.

The 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 Rs 522 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 firm 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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