NCLAT stays insolvency proceedings against BPTP after it settles dispute with RBCL Projects
NCLAT stays insolvency proceedings against BPTP after it settles dispute with RBCL Projects
The construction was related to Faridabad and Gurugram group housing schemes
The National Company Law Appellate Tribunal (NCLAT) has stayed insolvency proceedings against BPTP Limited after the Delhi-NCR real estate firm informed the tribunal that it had settled the dispute with its operational creditor RBCL Projects.
Earlier, the National Company Law Tribunal (NCLT) had directed to initiate the proceedings against BPTP under the Insolvency & Bankruptcy Code (IBC) after RBCL, an MSME involved in infrastructure activities (including completion or finishing of a building under construction), filed a petition.
The counsel appearing for BPTP informed the tribunal about the settlement between the parties. He sought time to file a joint application. The counsel for RBCL also stated that it had already received the amount under the settlement.
The NCLAT thus directed, "We stay the 14 November 2022 order."
On the stay order, Rohit Mohan, the senior vice president at BPTP said, "BPTP is a financially sound company with an established track record. It has delivered over 20,000 homes, Our company is known for its transparency and fairness in all its dealings and is committed towards its customers and stakeholders' satisfaction."
He added, "The NCLAT after hearing the submissions/arguments of the parties, has stayed the 14 November order of NCLT initiating insolvency proceedings against BPTP. All disputes and claims between RBCL and BPTP stand fully settled. As such the CIRP proceedings and appointment of IRP stand stayed."
Earlier, NCLT had rejected the contentions of BPTP of having a pre-existing dispute over the claims with its operational creditor, terming it "an afterthought and moonshine."
The tribunal had appointed an Interim Resolution Professional (IRP) and declared a moratorium against the company as per the IBC procedures.
It had ruled, "On perusal of the material available on record, we are of the considered view that the operational creditor has established the default on the part of the corporate debtor in payment of the operational debt being above the minimum threshold limit. Accordingly, the Corporate Insolvency Resolution Process (CIRP) is initiated and the moratorium is declared."
The company was given Rs.34.25 crore work order by BPTP in April 2015 for the construction of its group housing project Park Sentosa at Sector 77 in Faridabad. Later it was also awarded work orders for other projects Discovery Park and Astaire Garden in Gurugram.
According to the petitioner, some payment was made against the work order. In July 2017, it received an e-mail from BPTP for the demobilization of the project, following which it submitted a final bill of Rs.4.90 crores.
On not receiving the payment, in October 2018, RBCL filed a petition before NCLT. However, it withdrew the petition following a settlement. But yet again, it approached the tribunal alleging the failure of BPTP to pay the final bill and release the performance guarantee. It claimed a total default of Rs.5.92 crore, which also included an interest of Rs.1.01 crore.
BPTP rejected it, claiming a pre-existing dispute over the claims and contending that the demand notice was not in a proper format.
Meanwhile, the petitioner initiated arbitration for the works done in the two projects, Discovery Park and Astaire Garden. However, the tribunal observed there was no pre-existing dispute on the Sentosa project, where a claim of Rs.1.07 crore was filed.
