NCLT takes action against 'Spaze Towers' for delayed Possession

The National Company Law Tribunal directs the initiation of insolvency proceedings against the reality firm Spaze Towers admitting an appeal which is filed by the flat owners. A two-member NCLT bench has defaulted in completion of the construction of flats in project ‘Spaze Arrow’ at Sector 78, Gurugram while giving the possession within the timeline of 42 months.

The Delhi bench of NCLT also appoints an interim order resolution professional to run the company while suspending the board and putting it under the protection of moratorium as per the provisions of the insolvency and Bankruptcy Code.The NCLT rejected the submissions of Spaze Tower that it had settled the dues of nine petitioner allottees and therefore they should not be treated as financial creditors.

According to NCLT,’’it is clear that when a default takes place, i.e., the debt becomes the debt becomes due and not paid, the Insolvency Resolution Process shall begin the corporate debtor. Therefore, on the basis of discussion…we are satisfied that the present application is complete in all respects’’.

The financial creditor qualifies to move the application against the corporate debtor in default, which is the financial threshold limit of Rs.one crore.The NCLT order came over a plea of together filed by the 37 petitioners claiming a total default of Rs.23.37 crore towards the purchase of their respective units at project ‘Space Arrow’.The commercial project was launched in the year 2012, while promising a high-end commercial complex, having retail shops, showrooms, restaurants and a tower block with offices and serviced apartments.