NEW DELHI: The Yamuna Expressway Industrial Development Authority (YEIDA) has withdrawn its appeal before the appellate insolvency tribunal NCLAT against an NCLT order which approved Ace Infracity’s bid for Three C Homes. The development comes after YEIDA accepted the proposal by Ace Infracity Developers to pay for compensation to farmers and requested the NCLAT to withdraw its appeal.
Both YEIDA and Ace Infracity were in talks for settlement, while the matter was pending before the National Company Law Appellate Tribunal (NCLAT).
On July 4, 2024, YEIDA gave a proposal to pay for compensation for farmers which Ace Infracity accepted during the hearing before NCLAT.
“In view of the acceptance of the proposal by the SRA (Ace Infracity), the appellant (YEIDA) is not to proceed with its appeal subject to compliance of the conditions as indicated in the communication dated July 4, 2024, which has been given to counsel for the SRA,” NCLAT said.
It further noted:” Recording the aforesaid, we are of the view that no useful purpose shall be served in continuing with the appeals. The appeal is permitted to be withdrawn with liberty to revive.”
As per the settlement, farmer compensation will be paid by Ace Infracity.
Earlier in this matter, the allotment of land was cancelled by YEIDA in January 2021 which was challenged by the resolution professional of Three C Homes Gaurav Katiyar before NCLT.
The NCLT restored the land allotment in January 2023.
Subsequently, the Resolution plan given by Ace Infracity was approved by the NCLT in June 2023.
While approving the bids of Ace Infracity, NCLT did not entertain the objections put forward by YEIDA, the land allotting body, and held that the amount of Rs 67 crore being brought in by the corporate debtor was sufficient for them to settle their dues.
This NCLT order was subsequently challenged by YEIDA before NCLAT.
The corporate Insolvency Resolution Process (CIRP) was initiated against Three C Homes in September 2019.
On June 13, 2023, the NCLT approved Ace Infracity’s Rs 140.39-crore resolution plan.
The fair value of the Corporate Debtor (3 C Homes) is Rs 600.87 crore and the liquidation value of Rs 480.70 crore as per Form-H filed with the application.
While approving the bids of ACE Infracity, the NCLT had said bid of Ace Infracity Developers has been approved by the Committee of Creditors (CoC) with 100 per cent votes and it can not “interfere with the “commercial wisdom” of the lenders.
However, it was challenged by YEIDA before the appellate NCLAT.
