Mumbai, May 13: The National Company Law Tribunal (NCLT) has directed the liquidation of real estate firm G.S. Constro & Infra Private Limited after the insolvency resolution process failed to yield any resolution plan within the statutory timeline prescribed under the Insolvency and Bankruptcy Code (IBC), 2016.
The tribunal also took note of allegations by the Resolution Professional (RP) regarding non-cooperation by the suspended management during the Corporate Insolvency Resolution Process (CIRP).
The order was passed on an application moved by Resolution Professional Bhaskar Gopal Shetty under Section 33 of the IBC. The tribunal observed that the CIRP against the company had commenced on October 20, 2023, and expired on October 19, 2025, without any successful resolution plan being submitted.
Worli redevelopment dispute cited during proceedings
During the proceedings, the RP informed the tribunal that the company’s principal asset was an alleged recoverable amount of Rs 59.48 crore from Nita Co-operative Housing Society at Worli towards redevelopment expenses.
The amount is presently the subject matter of arbitration proceedings before the Bombay High Court. The suspended directors allegedly claimed that the dispute surrounding the Worli redevelopment project was the primary reason for them to effectively cooperate and complete the insolvency process.
The tribunal, however, noted that despite directions issued under Section 19(2) of the IBC, the suspended directors failed to provide crucial information and records necessary for preparation of the Information Memorandum and publication of Form G. This, the tribunal observed, adversely impacted the resolution process.
NCLT orders liquidation under IBC provisions
Referring to Section 33(1) of the IBC, the tribunal observed that where no resolution plan is received before expiry of the CIRP period, the adjudicating authority is left with no option but to order liquidation of the corporate debtor.
“No resolution plan has been received within the prescribed CIRP period, and no application for extension of CIRP has been filed or is pending with this Authority,” the bench noted in its order.
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The NCLT subsequently directed liquidation of G.S. Constro & Infra Pvt Ltd in accordance with the provisions of the IBC. The tribunal appointed insolvency professional Ashok Mittal as the liquidator.
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