The National Company Law Tribunal (NCLT), New Delhi Bench has held that the pendency of proceedings before the Real Estate Regulatory Authority (RERA) and delays allegedly caused by lack of external infrastructure cannot be used as a defence to defeat an insolvency petition filed by allottees under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC).
The Bench admitted a petition filed by 176 homebuyers seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the developer of a residential project after finding the existence of financial debt and default arising from prolonged non-delivery of possession.
The homebuyers submitted that despite paying substantial consideration for their…