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The National Company Law Appellate Tribunal (NCLAT) has concluded the Corporate Insolvency Resolution Process
(CIRP) against Marvel Realtors & Developers Ltd, following the acceptance of a settlement agreement with its
financial creditor. NCLAT, headed by Chairperson Ashok Bhushan, announced the closure of the CIRP based on the
settlement letter submitted by the realtor to its financial creditor, IDFC First Bank, dated May 8, 2023. The NCLAT
order set aside the previous order issued on December 23, 2022.
Furthermore, the plea filed by Catalyst Trusteeship, opposing the withdrawal of the CIRP against Marvel Realtors &
Developers, was rejected by the appellate tribunal. NCLAT stated that the intervener could pursue separate legal
proceedings to safeguard its interests.
The NCLAT emphasized that in the current case, a Committee of Creditors (CoC) had not been established.
Consequently, it dismissed the intervener's claims against the withdrawal of the CIRP. The tribunal believed that due
to the intervener's objection in filing a claim before the Insolvency Resolution Professional (IRP), the CIRP should not
proceed since the debt, for which the CIRP was initiated, had been settled with the Financial Creditor. It advised the
intervener to seek legal recourse to protect its interests.
NCLAT's directive was prompted by a plea filed by Vishwajeet Subhash Jhavar, the former Director of the suspended
board of Marvel Realtors & Developers Ltd. The National Company Law Tribunal (NCLT) bench in Mumbai had
ordered the initiation of insolvency proceedings against Marvel Realtors & Developers on December 23, 2022, based
on a plea from IDFC First Bank. However, on January 4, 2023, the director approached NCLAT and informed them
that a settlement proposal had already been submitted to the bank. The bank confirmed that the proposal was actively
being considered by its management.
As a result, NCLAT stayed the formation of the CoC and instructed the IRP to continue operating the company as a
going concern, conducting regular business activities. According to reports, the lender had approached NCLAT
following a default of over Rs 44.50 crore.
In conclusion, the NCLAT has closed the CIRP against Marvel Realtors & Developers Ltd after acknowledging the
settlement reached with the financial creditor, IDFC First Bank. The tribunal rejected the plea of an intervening party,
citing the absence of a CoC and the resolution of the underlying debt. The NCLAT's decision was based on a plea filed
by the former Director of Marvel Realtors & Developers, who had previously submitted a settlement proposal to the
bank. As a result, the company will continue its operations under the supervision of the IRP.
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