The National Company Law Tribunal (NCLT) has closed the insolvency resolution process against Parsvnath Landmark, a subsidiary of Parsvnath Developers, after home buyers “amicably settled” their dispute with the realty firm.

Parsvnath Landmark is constructing a 500-unit housing project at Civil Lines in the national capital.

In its order dated January 11, the NCLT had allowed insolvency proceedings against Parsvnath Landmark after three home buyers approached the tribunal complaining about a delay in the completion of the project.

However, a two-member Bench of the NCLT stopped the insolvency proceeding in an order dated February 1, after the financial creditors of the company (home buyers) informed it about the settlement with Parsvnath Landmark.

The three flat buyers along with the company filed their affidavits before the tribunal informing the decision.

The tribunal has also directed the interim resolution professional (IRP) appointed for Parsvnath Landmark to “not conduct any proceedings”.

According to the agreement executed between the parties on October 1, 2009, Parsvnath Landmark was to hand over the possession within 36 months from the date of commencement of construction, with a grace period of six months.