Mumbai: The National Company Law Tribunal (NCLT) has approved a request by secured creditors to restart the Corporate Insolvency Resolution Process (CIRP) for Lavasa Corporation, after the initially selected Successful Resolution Applicant (SRA), Darwin Platform Infrastructure Ltd (DPIL), failed to implement its approved Resolution Plan (RP) within the stipulated timeline.
In its order, the NCLT emphasized the importance of reviving the Corporate Debtor, Lavasa Corporation, given the unique nature of the case and the significant interests of homebuyers and other stakeholders. The tribunal noted that any further delays could severely impact these stakeholders and potentially make a resolution impossible.
"We found that the SRA has miserably failed to take any positive action to implement the approved resolution plan without any justifiable reasons," the NCLT stated. "No purpose would be served by granting further time to SRA for implementation of the resolution plan. Any further delay in the resolution of the Corporate Debtor would not only severely affect the interest of various stakeholders but would also render the resolution impossible." As a result, DPIL's request for an extension to implement the plan was rejected.
The NCLT's decision comes approximately a year after it initially approved DPIL’s resolution plan. However, in October, Union Bank of India had sought to withdraw the NCLT’s approval, alleging collusion between the Resolution Professional (RP) Shailesh Verma and DPIL to undervalue Lavasa’s real estate assets, resulting in a loss to the creditors.
Although the NCLT dismissed Union Bank’s claims, State Bank of India later filed a similar appeal with the National Company Law Appellate Tribunal (NCLAT) in November, which was also dismissed.
