MUMBAI: The National Company Law Tribunal (NCLT) has protected the rights of realty developer Housing Development & Infrastructure Ltd (HDIL) over a key property covering a 73-acre site in Hyderabad‘s Shamshiguda village that was intended for a joint development by the company.
HDIL was admitted into the corporate insolvency resolution process (CIRP) in August 2019. The tribunal has held that new development agreements, after the initial joint development pact, executed by HDIL during the moratorium have violated the moratorium and adversely affected the corporate debtor’s rights.
NCLT has directed that no third-party rights be created concerning the property under the JV agreement until the resolution plan is approved, protecting the corporate debtor’s interests during the ongoing insolvency process. The tribunal’s order, pronounced on August 6, addresses crucial issues surrounding the property rights under a JV agreement and an assignment agreement, which are central to the ongoing insolvency proceedings.
“This order provides for protection of the rights of the corporate debtor in respect of the property in question till the time plan is not approved by the authority,” said Ashish Pyasi, partner at law firm Aendri Legal.
