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EARTH TECHONE CASE IS PENDING IN HON'BLE SUPREME COURT.
LATEST UPDATE ON CASE
As per the latest update it is to inform you all that:
A resolution plan of Alpha Corp Development Pvt Ltd was passed by CoC in 2019 for the Project.
This plan was approved by NCLT in 2021.
As there were dues of Greater Noida Authority so Greater Noida Authority had challenged this plan in NCLAT in 2022.
This plan was having some provisions against Insolvency code so it was rejected by NCLAT on 30 January 2023 and ordered for inviting fresh resolution plans from builders for the project.
Now the plan rejection order has been challenged by Alpha Corp in the Supreme Court on 1st March 2023 which was listed on 17th March 2023.
17/03/2023: Supreme Court has not granted any stay on current process for invitation of new resolution plans. Next date given is 14 April, 2023.
14/04/2023: Supreme Court ordered to complete the pleadings in the case and list the matter on 9th May, 2023 with status quo.
09/05/2023: The Case was listed today but due to hearing in Constitutional Bench, the matter was adjourned to 11th July, 2023
11/07/2023: The case was called but GNIDA lawyers requested for adjournment due to change in CEO of GNIDA. Next date given is 12/09/2023.
17/07/2023:
Our Supreme Court Appeal was listed separately. Our legal team represented the Techone Project Association-UTOPIA & Sapphire Project Association-SPICA. Find the detailed update of hearing in points below:
1. Hon’ble Supreme Court heard the arguments and scolded the GNIDA for not taking serious actions against the developer in time.
2. Hon’ble Court also clearly noted that for all these years GNIDA was sleeping and not taking any actions against the developer so they are not eligible for any Interest or penalty on the dues.
3. It was also noted that GNIDA is not eligible to charge any dues after the appointment of IRP on the developer.
4. Hon’ble Court especially mentioned that protecting the interests of they buyers is the ultimate responsibility of GNIDA/UP Government and they have done nothing till now in this direction.
5. Hon’ble Court also directed GNIDA to file an affidavit stating the reasons that why this project is not being taken over and developed by GNIDA themselves.
6. After hearing all the arguments, Hon’ble Supreme Court allowed the appeal filed by our Association and condoned the delay of over a month.
7. Kindly note that after a detailed research, We did not find a single case where Hon'ble Supreme Court had condoned a delay in filing an appeal under Insolvency and Bankruptcy Code. So it may be the first time where a delayed appeal is allowed by the Hon’ble Supreme Court under Insolvency and Bankruptcy Code. It shows that due to seriousness of the issues raised by our Associations in this matter, Hon'ble Supreme Court condoned the delay and allowed our appeal to be heard in detail in upcoming hearings.
8. Hon’ble Court directed to list our appeal with all other appeals on 12/09/2023.
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In brief all the developments related with this case has been summarized as below to develop understanding of Supreme Court Case:
1. IRP was appointed on Earth Infrastructures Ltd in June 2018.
2. IRP/RP prepared a list of claims till 30th November 2019.
3. No plan for revival of Earth Infrastructures Ltd/projects received during the process except the plan of Alpha Corp Development Pvt Ltd.
4. To save the company from liquidation there was no other option but to approve the plan of Alpha Corp Development Pvt Ltd (in expectation that plan would be amended as per the practical issues being faced during implementation).
5. National Company Law Tribunal(NCLT) approved the plan of Alpha Corp Development Pvt Ltd for three projects: Earth Techone, Earth Sapphire & Earth Copia (Gurugram) in year 2021.
6. In year 2022 Greater Noida Industrial Development Authority except accepting the plan passed by NCLT filed an appeal against the Plan approval order in National Company Law Appellate Tribunal (NCLAT).
7. In National Company Law Appellate Tribunal, UTOPIA & SPICA jointly filed an intervention application IA/4533/2022 in NCLAT for proper representation of the buyers of both the projects. The Application was already discussed in our members meeting already uploaded on association website.
8. On 10/01/2023, NCLAT reserved the judgement of the case which was passed on 30/01/2023 in which NCLAT set aside the plan approval order of NCLT and on the basis of our strong representation, except sending company into liquidation, ordered to start a fresh process on the company inviting fresh resolution plans for revival of the projects.
9. Against this judgement, Alpha Corp filed an appeal in Supreme Court followed by appeal by Resolution Professional, Greater Noida Authority and Earth Copia Welfare Society.
10. None of the above appeals explain the practical issues in revival of the project and left a window again for a long litigation in future.
11. To explain such issues before Hon'ble Supreme Court to get a final solution for this whole case and to save precious time of project buyers from expected future litigations, UTOPIA & SPICA have filed a joint appeal along with Intervention applications for a proper representations in respective appeals filed by different parties.
ORDERS OF HON'BLE SUPREME COURT OF INDIA
ORDERS OF HON'BLE SUPREME COURT OF INDIA
17/07/2023.pdfLEGAL FEE CONTRIBUTION
LEGAL FEE CONTRIBUTION
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