Mumbai: The Esplanade metropolitan magistrate court has allowed the plea of Phoenix Arc Pvt Ltd, an asset reconstruction company, to take over the possession of several movable and immovable properties of the Nirmal Lifestyle Mall Pvt Ltd to recover dues amounting to Rs1,179.41 crore.
Assets to Be Taken Over
The magistrate court has now appointed lawyer Pratik Deepak Surti as the court receiver to take over the possession of the immovable properties of the mall and its another company Nirmal Lifestyle Developers Pvt Ltd (NLDPL) situated in Nahur. The assets include a parcel of land on which a partially-constructed mall stands.
It is claimed that the Nirmal Lifestyle Mall had taken credit facilities from L&T Finance Ltd between 2017 and 2019. On June 30, 2023, the latter subsequently signed an agreement with Phoenix Arc, making it an assignee having rights over the mortgaged properties.
Default and NPA Classification
Phoenix Arc had claimed that in due course, the borrower defaulted in repayment of the financial assistance as agreed. Hence, the Nirmal Lifestyle Mall's account was classified as a non-performing asset on December 27, 2023. Thereafter, it is claimed that Phoenix Arc had, on February 14, 2025, sent a legal notice, asking the Mall to clear dues of Rs1,179.41 crore in 60 days. However, it is alleged that it did respond to the notice and even failed to repay the dues. Hence, the asset reconstruction company moved the court, seeking possession of the Mall's immovable properties.
The court receiver has been asked to “issue a 15-day advance notice to the parties concerned before taking possession. The commissioner may use necessary force, including breaking locks, and seek police assistance if required at the applicant’s expense,” read the court's order.
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