Interim Resolution Professional to oversee ATS Group's Knightsbridge project

13 May 2024 , 10:57 AM

National Company Law Appellate Tribunal (NCLAT) has directed that an interim resolution professional (IRP) should oversee ATS Group’s Knightsbridge project. The appeal tribunal’s ruling comes after ASK Property Fund, the Blackstone-backed ASK Asset & Wealth Management Group’s real estate private equity division, sued ATS at the National Company Law Tribunal (NCLT) on grounds of ₹285 Crore in default.

All parties involved were told by NCLAT to file a reply within three weeks, and the IRP was advised to confine its actions to the construction process alone.

Following the admission of another ATS project, situated in Sector 150, Noida, in the insolvency court in November 2023, this represents the second time that ASK Property Fund has taken legal action against the real estate company at the NCLT.

“Under the direction of the IRP and other fund signatories, the RERA accounts designated for the project’s construction may be utilized for construction. In its ruling, NCLAT stated that financial creditors must cooperate in order to provide cash for development.

NCLT had previously designated an IRP for the project, which prompted ATS to get in touch with NCLAT. ATS and JM Financial contested the NCLT’s Section 7 order during the NCLAT hearing.

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