The National Company Law Tribunal (NCLT) Chandigarh Bench has initiated the Corporate Insolvency Resolution Process (CIRP) against Primezone Developers Private Limited after holding that the company’s failure to hand over possession of plots or refund the money received from allottees constituted a financial debt default under the Insolvency andBankruptcy Code, 2016 (IBC).
Further, the insolvency petition was moved under Section 7 of the IBC by 33 plot allottees who had invested in the company’s “Prime City-Assandh” project located in Karnal, Haryana. The applicants alleged that despite making payments in accordance with the allotment terms, the project remained largely undeveloped and possession of the plots was…