High Court Issues Stay Order On the Liquidation Process
Taking cognizance of interest of the customers, a bench of the Delhi High Court, on, issued a stay order on the liquidation proceedings of AN Buildwell Pvt Ltd. The order came to refuse liquidation after delay in the filing of revival application from the promoters of Spire Edge and Spire Woods to escape their liabilities.
In a desperate bid to win sympathy of the customers, Major SK Hooda’s Schleicher Intec Pvt Ltd had filed the application through provisional liquidator in the Honorable Court for de-watering of the water logged project, Spire Woods, after a delay of one year. However, nothing was done despite official permission.
It was found that the promoters were supporting some customers by various means and seeking their support in return to create disruption amongst other customers and hence, delay the entire process of filing of revival to ensure liquidation. As a consequence of the same, the stay has been ordered.
Along with the stay on the liquidation proceedings, the High Court has also instructed the promoters to start de-watering within three days, include treatment to avoid water logging in future. The court has further ordered the Right to Appealing Associations to review the situation and report to the honorable High Court in case of non-compliance.
In a hearing in the matter on a prior date, the honorable court had taken cognizance of siphoning of funds to the tune of 42.5 crores by the promoters. Provisional Liquidator has now been instructed by the Hon’ble High Court to investigate into the affairs and specifically the siphoning of Rs. 42.05 Cr. and submit the report and suggest whether it needs further investigation through Serious Fraud Investigating Office (SFIO).