NCLAT declares insolvency of Paramount company illegal; flat buyers relieved
The residents of Paramount Emotions got big relief as the National Company Law Appellate Tribunal (NCLAT) declared the insolvency order illegal. They were deeply affected by the insolvency order which had halted the registration of flats and maintenance activities within the premises of the society.
The NCLAT hearing the matter on Thursday stated, “In view of fact that the parties (builder and vendor) have settled the matter, we are not remitting the matter to the adjudicating authority (NCLT).”
It further added, “Interim Resolution Professional declaring moratorium, freezing of account and all other orders passed by adjudicating authority pursuant to impugned order and action taken by the Resolution Professional etc are declared illegal and are set aside.”
The insolvency order had also affected the residents of other projects of the Paramount Propbuild Pvt Ltd. They were also facing the halting of registration of flats and maintenance activities at their respective societies.
The order came after the developer submitted that the Paramount Propbuild Pvt Ltd never received the notice of insolvency otherwise the matter would have been settled earlier.
As City Spidey had earlier reported that a vendor had complained to NCLT against the developer alleging for not clearing the bills and following which the tribunal had sought developer’s reply. On failure of submission, NCLT had declared the real estate firm insolvent and had suspended the authority of the director of the company and had also appointed an IRP.
In the last two weeks, the residents had to face a tough time because daily maintenance works were halted due to non-payment of employees. Many residents, who were ready to shift to their flats, panicked because the process of flat registration was stopped.
Many residents complained that they had planned to shift into their flats and they were just waiting for completion of some finishing works in their flats but all were stopped. Now, they believe the work will be resumed soon and they will be able to shift into their new homes.