Introduction
The Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “Code”) was introduced in 2016 and since then has undergone many amendments including the amendment done in 2018. With this amendment, Allottees in a real estate project (“Homebuyers”) were included in the category of financial Creditors and they could also initiate insolvency proceedings against the Builder. Though due to the fact that there can be thousands of Homebuyers in a project and one Homebuyer initiating the insolvency proceeding can jeopardize the interest of thousands of other Homebuyers, a threshold was proposed. The code was once again amended in 2020 and this new amendment introduced a bar, where at least 100 homebuyers or 10% of total Homebuyers of the same project, whichever is lesser are required to file an insolvency application against the builder.
Case of Ajnara India
Ajnara India Ltd. was established in 1991 and is a major real estate developer in NCR. In pursuance of its business activities, it launched a project namely Ajnara Ambrosia in Sector 118, Noida in 2014 and started taking bookings for the project in early 2012. The builder promised to deliver the possession of the units in the project to the Homebuyers within 3 years of the signing of the agreement. But when the Builder was not able to keep his promise and deliver the project in the said timeline, a total of 113 homebuyers initiated insolvency proceedings against this default of the builder before the National Company Law Tribunal (“NCLT”) in January 2021. The 2 Judge bench in the order dated 20.09.2022 finally admitted the petition filed by the Homebuyers.
The copy of the order dated 20.09.2022 can be accessed by clicking on this link
As per the facts of the petition Ajnara India took advance payments and raised a total financial debt of Rs 50,47,48,426 from buyers but failed to fulfill its commitments and defaulted on the construction of the project and delayed possession of the flats. The NCLT has also appointed an interim Insolvency Resolution Professional (IRP) named Amarpal to take the proceedings further and assist with the process. From now Ajnara would not be able to take up any work in the project without approval from the IRP.
What are the steps ahead?
After the NCLT passed an order dated 20.09.2022 a Public Notice was issued by the Insolvency and Bankruptcy Board of India (IBBI) on 22.09.2022 in leading newspapers of the country inviting all the creditors of Ajnara India Limited to file their claim. As per the Public Notice, the last date to file the claim is 04.10.2022. The creditors must know in what category they fall and file the appropriate form accordingly.
The copy of the Public Notice published in Economic Times can be accessed by clicking on this link
The proof of the claim is to be submitted by way of the following specified forms:
| S. No. | Form | Creditor Type |
|---|---|---|
| 1. | B | For operational creditors except workmen and employees |
| 2. | C | For financial creditors |
| 3. | CA | For financial creditors in a class (Homebuyers or Allottees) |
| 4. | D | For workmen and/or employees |
| 5. | E | For authorised representatives of workmen and employees |
| 6. | F | For creditors other than operational creditors and financial creditors |
How to file the Claim Form?
The appropriate claim form must be carefully chosen from the abovementioned categories and the same must be filed properly and be submitted with appropriate proof on www.ajnaraindiacirp.in before 4th Oct, 2022. The hard copy of this claim form must also be submitted to the interim resolution professional, Mr. Amarpal at Office No. 201, Aggarwal Plaza, Sector -9, DC Chowk, Rohini, Delhi- 110085.
A sample of how to fill out a claim form can be accessed by clicking on this link [FORM – CA].
The application of the claim shall be made to the interim insolvency resolution professional, Mr. Amarpal. Following is the list of instructions that must be followed while following the Claim form.
- Personal Details: The buyer has to fill out his name in the column named as the name of the financial creditor and must provide his personal details like identification number (eg. Aadhar Card no.), email id, etc. It is pertinent a note that if there is more than one allottee the name of all the allottees must be mentioned along with their personal details.
- Total Amount of Claim: In the total amount of claim the buyer must fill the principal amount and add interest to the principal amount @ MCLR +2 % ( unless specified on the aforementioned website). The total amount of the claim will be the sum of the principal amount and the interest added thereon. A detailed calculation sheet should be enclosed with the claim form and the interest will be calculated on each payment separately. For eg., if someone made a payment of ₹120 in 2013 and ₹200 in 2014, then interest on payment of ₹120 shall be calculated from 2013, and interest on payment of ₹200 shall be calculated from 2014.
- Additional Documents: The Creditor/ Claimant must attach all the relevant proves to back his claim. For example, the creditor can attached with the document the allotment letter, booking letter, builder buyer agreement/agreement to sale, loan sanction documents, payment receipts, the complaint made before RERA authority (if applicable), orders of authority (if applicable), etc.
- Details of how the debt was incurred: The Creditor/ Claimant must explain in brief how the debt was incurred. For e.g. he must mention all the back details on how and when he bought the property and made the payments etc.
- Bank Details: The claimant must then mention the bank details in which he wants the money to be transferred. It is also advisable that in the case of joint property details of the joint account of both the buyers should be added.
- Name of Insolvency Professional: The buyers then must choose an insolvency professional of their choice from the given options of insolvency professionals mentioned in the Public Notice, to represent them in further proceedings.
- Miscellaneous: At last buyers must sign the declaration and verify that but details mentioned by them are correct and that nothing is concealed by them.
Conclusion:
Filing of claim can be a tricky affair and not filing it properly may lead to non-acceptance of the claim. Thus, the same must be followed properly and with proper care and attention. In case of any doubt, while filing the claim, advice from the appointed interim insolvency resolution professional can be taken. Moreover, one can also seek legal advice from any practicing advocate or practicing CA or CS.
1 comment on “Ajnara Insolvency: Process to File Claim by The Homebuyers”