NCLAT reverses insolvency proceedings against Vatika Ltd

NCLAT has reversed the National Company Law Tribunal (NCLT) order of initiation of insolvency proceedings against Gurgaon-based real estate developer Vatika Ltd.

The matter pertained to proceedings initiated under the Insolvency and Bankruptcy Code, 2016, in connection with a financial dispute involving a lender. The National Company Law Appellate Tribunal (NCLAT), while examining the case, observed that the principal repayment obligations were not due at the time of initiation of proceedings and that certain claims had been overstated in the application.

NCLAT has also observed that CIRP against the corporate debtor ought to have been confined only to the project in question ‘Aspirations’ and


the CIRP cannot be extended to other projects of the corporate debtor, situated in state of Haryana and other places.

The Tribunal also clarified that the financial debt and default under consideration related to outstanding interest obligations, and not the entire principal amount, bringing clarity to the nature of the dispute.

This development enables the Company to move forward with greater certainty and renewed focus on its core operations.

Vatika Limited has delivered more than 47 developments to 55,000 homebuyers.

“This reflects the strength of our fundamentals and the continued confidence of our stakeholders. We are committed to maintaining transparency and delivering on our responsibilities with renewed focus and discipline,” a company spokesperson said.