The Chennai Bench of National Company Law Tribunal (NCLT) has directed commencement of insolvency proceedings against Green Peace Construction Private Limited, in a case filed by a group of flat owners.
In its petition, members of Ajanta Flat Owners Association had claimed non-payment of outstanding dues of ₹1.15 crore along with interest of about ₹31 lakh by the builder. The members represented themselves as operational creditor of the company.
In 2010, the members of the Association had entered into joint development agreement with the firm for construction of 54 flats, which included a clause that if any structural defect is found in the building within 18 months of possession, the developer has to fix it without any monetary liability on the part of house owners, it said.
The Association also claimed that the builder failed to complete substantial work relating to other facilities including provision for two gensets, lift, external paintings, provision of the reticulated gas connection and gym equipment, among others.
Despite repeated reminders and assurances, the work was not completed and the owners took upon themselves to finish the work. The builder agreed to pay for it but failed to do so, they alleged.
NCLT has appointed Muthuiah Thevar Rajapandian as the interim resolution professional to initiate the insolvency proceedings.