NCLT Approves Resolution Plan For D S Kulkarni Developers, Homebuyers Will Get Flats Against Their Claims: NCLT Mumbai

The National Company Law Tribunal (“NCLT”), Mumbai Bench, comprising of Shri H.V. Subba Rao (Judicial Member) and Shri Shyam Babu Gautam (Technical Member), while adjudicating a petition filed in Bank of Maharashtra v D.S. Kulkarni Developers Limited, has approved the Resolution Plan submitted by a consortium of Ashdan Properties Pvt. Ltd., Classic Promoters and Builders Pvt. Ltd. and Atul Builders for D.S. Kulkarni Developers Ltd. Under the Resolution Plan, the Homebuyers of the Corporate Debtor’s projects will be given flats against their claim amount.BACKGROUND FACTSD.S. Kulkarni Developers Limited (“Corporate Debtor”) is a company engaged in real estate development in Pune, Mumbai, Bengaluru, Nasik and New Jersey, USA.The ongoing projects of the Corporate Debtor in Pune include DSK Vishwa Phase VI Anandghan, DSK Mayurban, DSK Nandanvan, DSK Gold Leaf, DSK Dream City - Waterfall Residence, and DSK Madhukosh in Mumbai. On 26.09.2019, the NCLT initiated Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor. Mr. Manoj Kumar Agarwal has been appointed as the Resolution Professional.A Consortium comprising of Ashdan Properties Pvt. Ltd., Classic Promoters and Builders Pvt. Ltd. and Atul Builders (“Successful Resolution Applicant/SRA”) submitted a Resolution Plan for the Corporate Debtor, which was approved by the Committee of Creditors (“CoC”) with a majority voting share of 83.37%. Accordingly, the Resolution Professional filed an application under Section 30(6) of IBC before the NCLT, seeking approval of the Resolution Plan.OUTLAY OF THE RESOLUTION PLAN The average fair value of the Corporate Debtor is Rs. 835.78 Crores and average Liquidation value is Rs. 596.73 Crores. The Resolution Plan is valued at Rs. 826.30 Crores.The resolution plan proposes to pay the Secured Financial Creditors an amount of Rs. 81,977.16 Lakhs against an admitted claim of Rs. 1,19,783.22 Lakhs. The Unsecured Financial Creditors will be paid Rs. 25,861.93 Lakhs against their admitted claim of Rs. 35,683.77 Lakhs.The Operational Creditors will be paid Rs. 171.13 Lakhs as against an admitted claim of Rs. 24,996.25 Lakhs. There are no claims from the Workmen of the Corporate Debtor. The Employees of the Corporate Debtor are to be paid hundred percent of their dues which have arisen in preceding 12 months of CIRP commencement date. The Homebuyers will be given flats against their claim amount.NCLT VERDICTThe Bench has approved the Resolution Plan of Consortium comprising of Ashdan Properties Pvt. Ltd., Classic Promoters and Builders Pvt. Ltd. and Atul Builders for D.S. Kulkarni Developers Limited. Case Title: Bank of Maharashtra v D.S. Kulkarni Developers LimitedCase No.: CP (IB) No. 1633/MB/C-I/2019Counsel for the Applicant: Sr. Adv. Vikram Nankani a/w Adv. Shyam Kapadia, Advocate.Click Here To Read/Download Order

NCLT Approves Resolution Plan For D S Kulkarni Developers, Homebuyers Will Get Flats Against Their Claims: NCLT Mumbai

Pallavi Mishra

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