NCLAT rejects Central Bank of India plea, clears ₹390 crore plan for Neptune Developers
MUMBAI: National Company Law Court of Appeal (NCLAT), Neptune developers Pvt. Ltd, bankruptcy is a real estate company. As an opposition financial creditor, the court decided that the Bank could not prevent a plan approved by the Creditors Committee of the Commercial Wisdom ”.
The order brings relaxation to more than 2,000 landlords waiting for more than ten years to have the apartments connected to Neptune’s stopped project.
“There is no reason to intervene in the approval of the decision plan based on the approval of the commercial wisdom in the use of commercial wisdom. There is no value in appeal. The appeal was rejected.”
The decision came after the Central Bank of India challenged the 25 March National Company Law Court (NCLT). La390 CRORE SOLUTION PLAN SHREE NAMAN developers PVT. Ltd. This plan won 85.35% approval of creditors in March 2023.
This points to the second purchase for Shree Naman developers who bought Radius Infra Holdings in May 2024. Before the NCLT plan approved, two developers – KGK Realty (India) and ESS Gee real estate developers also expressed their interest in obtaining Neptune within the scope of the ifpune process.
Neptune developers, who had defailed from the Central Bank of India, mortgaged the 26.05 acres of Swarajya Project ında in Kalyan, in the center of Mumbai, to the lending. Following the bankruptcy petition of the bank’s bankruptcy and bankruptcy Law (IBC) (IBC), NCLT adopted the case in July 2021 and appointed Bijendra Kumar JHA as a temporary solution professional (IRP).
During the corporate bankruptcy resolution process, IRP appointed the values that determine the liquidation values Kunal Kantylal Vikamsey and Adroid values. La8.39 Crore and La2.21 Crore. The Central Bank of India, which has 11.83% of the voting rights, objected to these findings and claims that the liquidation value was closer. La26.83 Crore. For a new valuation that NCLT has partially accepted, he ordered a third valuation while allowing COC to continue negotiations.
The third valuation Jayesh Mohan Kamat later reported a fair value. La13.85 Crore and Liquidation Value La11.08 Crore is higher than previous estimates, but still below the bank’s claim.
The Central Bank of India argued that critical assets, including 66 swap departments given to 23 KDMC apartments and contractors, have been removed from the calculations and made the report “faulty .. However, the valuation said that the swap apartments have already been changed for payment and could not be considered as realized assets.
By the way, COC, La26.83 Crore as a controversial value for the Bank, an arrangement that the lender’s lawyer initially accepted at the 31 January 2025 NCLT hearing, but later objected.
“The Central Bank Advisor to India argued that Ravi Raghunath argued that NCLT approved the plan early before considering the third valuation report. In fact, the approval process was revived and required a fresh COC vote after corrected values.”
However, Senior Advisor Abhijeet Sinha, who represented the decision profession with MDP Legal’s Niyati merchant, said that the bank itself demanded the third valuation and could not be repeated after the report was sent. He added that COC uses commercial wisdom in the approval of the plan and that an opposition creditor has only the liquidation value in accordance with the IBC’s 30 (2) (b) section.
Senior lawyer Gaurav Mitra and Homebuyers, who appeared for Edelweiss Arc, said that buyers continue to wait more than ten years more and more delays will be harmful.
The Court of Appeal observed that the values were registered experts and that their reports cannot be changed with subjective evaluations of creditors. He also said that the Central Bank of India would prevents the approval of the plan and would “indirectly do directly” and will only pay the liquidation value.
In the objections of the Bank, NClat found “no matter”, both rejected the appeals and approved the resolution plan of NCLT’s Shree Naman developers.
