26 February, 2019
Rajani Associates represented the Promoters of Orbit Corporation Limited in assisting Orbit Terrace’s housing Society to take over as developers and complete construction of Orbit Terraces after a settlement with a consortium of banks i.e. State Bank of India and Union Bank of India.
Promoters of Orbit Corporation Limited were represented by Ashish Parwani, Partner, Rajani Associate, Dikshat Mehra, Senior Associate, Rajani Associates and Vibhor Kapoor, Associate, Rajani Associates.
The Hon’ble Bombay High Court has taken on record the consent terms whereby Banks will convey certain Project land to the Society under SARFAESI and with permission of the Hon’ble High Court upon payment of agreed money directly by the Society to the Banks and thereupon, the Society shall be the developer of the said Project and will construct the Project.
While working on the resolution, the main challenges included:
To see that that Orbit Corporation Limited, a company which was under-going liquidation and the carving of the Project had to be done keeping in mind the provisions of SARFAESI, the MOFA 1963 and RERA 2016.
The other challenges faced by flat purchasers was to coordinate and negotiate with Banks for the settlement and carving out the Project.
The Banks and flat purchasers were also mindful of the said mortgaged Project to be sold to the society of the Project by way of sale/ transfer by Private Treaty as envisaged by the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002.
Going forward:
This carving out of the Project may set an example for future similar projects which are stuck due to winding up of the company. This would also aid the various flat purchasers to get back their properties from the secured creditors of company under liquidation.
