Ansal Properties and Infrastructure Ltd has said it has challenged the initiation of insolvency proceedings in an appeals tribunal.
The move comes after a lower court or the National Company Law Tribunal (NCLT) had ordered proceedings on a plea by two home buyers, the developer said in a stock-exchange filing.
As part of the proceedings, the tribunal has replaced the board with an insolvency resolution personnel.
Yesterday, the higher tribunal heard Ansal Properties’ appeal against the NCLT move and adjourned the case till today morning.
Ashok Tripathy and Saurabh Tripathy had jointly bought a unit measuring 3,764 square feet (sq ft) in the developer's township project -- Sushant Golf City -- in Lucknow in 2014 for Rs 1.62 crore.
Saurabh Tripathy had also bought a separate unit measuring 1,229 sq ft in the same project.
Both the home buyers had moved the NCLT against Ansal Properties as financial creditors.
Going by the agreements for both deals, the developer had to hand over possession two years later by 2017. According to the NCLT order, Ansal Properties has not completed the units.
The unit owners have, through a recovery letter produced by UP RERA (Uttar Pradesh Real Estate Regulatory Authority), claimed a financial debt of Rs 75,35,686 from Ansal Properties.
The developer, which has only paid a part of the debt, has cited bad market conditions and a slowdown in the sector as reasons for the delay in the project.