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Informist, Friday, Apr. 11, 2025

 

NEW DELHI – The National Company Law Appellate Tribunal has rejected additional claims worth INR 343 million from the Employees' Provident Fund Organisation against debt-ridden Nirmal Lifestyle Realty Pvt. Ltd. The appellate tribunal said with the approval of Oberoi Construction Ltd.'s resolution plan by the committee of creditors of Nirmal Lifestyle, all claims have been closed.

 

The appellate tribunal observed that if the resolution professional of Nirmal Lifestyle had taken cognisance of the belated additional claims of the EPFO, it would have resulted in re-opening of the resolution plan which would militate against the statutory scheme of the Insolvency and Bankruptcy Code, 2016 and tantamount to infringement of the clean slate theory. "The adjudicating authority did not commit any error, in the given facts and circumstances, in upholding the decision of the RP (resolution professional) to reject the belated additional claims of the appellant," said the appellate tribunal.

 

In 2021, the National Company Law Tribunal had admitted a petition to start insolvency proceedings against Nirmal Lifestyle. Thereafter, the EPFO filed a claim of INR 74.95 million in respect of provident fund contributions. The same was admitted by the resolution professional, and EPFO was categorised as an operational creditor.

 

In 2022, the committee of creditors approved the resolution plan submitted by Oberoi Constructions, a wholly-owned subsidiary of Oberoi Realty Ltd. Thereafter, in 2023, the organisation filed an additional provident fund claim of INR 343 million against the debt-ridden company. However, the same was rejected by the resolution professional and the tribunal as it was filed after the approval of the resolution plan by the committee of creditors.

 

At 1436 IST, shares of Oberoi Realty were up 3.8% at INR 1,549.55 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Tanima Banerjee

 

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