The ATS Knightsbridge housing project in Noida faces the corporate insolvency resolution proces

By Bricksnwall | 2024-05-06

According to NCLT decisions, ATS Heights Private Limited failed on payments of ₹285 cr and ₹47 cr to the lender, resulting in insolvency proceedings.

NOIDA: The national company law tribunal has initiated the corporate insolvency resolution procedure against the ATS Knightsbridge project, a luxury development located in Noida's sector 124.

The NCLT appointed an interim resolution expert after the constructor, ATS, failed to pay its dues on time, according to the order.

The ASK Trusteeship Services Private Limited, representing ASK Real Estate Special Opportunities Fund and ASK Real Estate Special Opportunities Fund II in the capacity of being its investment manager, ASK India Real Estate Special Opportunities Fund PTE Ltd, and ASK Investment Managers Limited (collectively referred to as "ASK Entities/Petitioners") initiated corporate insolvency resolution professional process against realty firm ATS Heights Private Limited that is developing

According to the ruling, ATS Heights Private Limited reportedly failed to pay the lender R285 crore and R47 crore, resulting in the CIRP being initiated.

For the reasons stated therein, the application is granted, and the name of the newly proposed interim resolution professional (IRP) Gaurav Katiyar with Registration No: IBBI/IPA001/IP-P00209/2017-18/10409 is taken on record as an IP proposed by the petitioners to be appointed as IRP," said the NCLT bench of justice Ashok Kumar Bhardwaj and Subrata Kumar Dash, member technical, who delivered the order on April 22, 2024.

The accompanying petition asks that construction work not be impeded and that property buyers not suffer any negative consequences. We have previously issued an order in this regard, C.P. (IB)-570/ND/2023. Nonetheless, it is directed that the IRP guarantee that the project proceeds and construction progress is not impeded. According to the ruling, the suspended promoters/management of the corporate debtor would ensure complete compliance with Section 19(1) of the IBC, 2016.

Getamber Anand, the ATS promoter, claimed that there was no default on the company's part because R285 crore or R47 crore was not a debt as it was an equity. However, the NCLT admitted the plea and initiated the CIRP based on the default commissioned by the real estate business.

Thus, even the failure to pay a portion of an obligation when it becomes due and payable constitutes a default on the side of a corporate debtor. In such a circumstance, an admission order must be issued under Section 7 of the IBC. If the NCLT determines that there is a debt but it has not become due and payment, the Section 7 application may be dismissed. Otherwise, there is no reason to reject the application," stated the order.

In 2012, the ATS Group purchased 11.5 acres of land from another Noida-based real estate firm, Logix Group, for 604 crore. The developer was supposed to create 60% commercial and 40% residential in this area along the Noida-Greater Noida Expressway.

The Noida government authorized building layout maps in May 2016, allowing construction to begin on this 11.5-acre project in Sector 124. The ATS was scheduled to begin residential development in phase I before moving on to commercial development. The residential section of the skyscraper consists of five 47-story towers. The developer has halfway completed the residential towers.

We are speaking with the entities that have filed a petition to commence the CIRP against our company. Hopefully, the situation will be resolved amicably at any time. It is also vital to note that the issue was not related to debt or default. Equity was invested in the company. As a result, the matter will be handled," said Getamber Anand, ATS Group's promoter.