Mumbai: NCLT Mumbai approved the Resolution Plan of Lamer Developers Private limited in Consortium with Neel Builders and Developers(successful resolution applicant SRA) in connection with the Sion based Project known as O2, which had left almost 300 Homebuyers pending since 2021.

A Section 7 IBC Petition was filed by the Homebuyers in 2023, when the Corporate Insolvency Resolution Process came to be initiated against Snehajali and S.B.Developers Private Limited ("Corporate Debtor") in March 2024, which eventually led to approval of the Resolution Plan with a voting share of 83.46% in favour of the SRA.

With the approval of the Resolution Plan, the Homebuyers will be getting possession of their Flats in a time-bound manner with various other amenities as stipulated in the Plan.

MDP LEGAL advised and represented the Resolution Professional of the Corporate Debtor and has been instrumental in getting the Resolution Plan approved by the NCLT

The resolution application, filed by the Resolution Professional (RP) Mr. Dinesh Kumar Deora on behalf of the CoC(Committee of Creditors ), sought approval for the plan, which outlines the settlement of various financial claims and the completion of the debtor’s stalled real estate project, ‘O2.’ The project consists of seven wings, with 280 units allocated to resettlers at no cost and 310 units for free sale, of which 297 have already been sold.

Resolution Plan has several highlights which are as below.

• Homebuyers’ Claims: Recognized as secured financial creditors, 297 homebuyers, including 17 who had not filed claims, will receive their flats as per the project’s database.

• Amenities Compensation: The SRA has agreed to compensate homebuyers with up to ₹3,00,000 for incomplete work related to flooring, kitchen platforms, and HTC-related modifications, with an additional ₹10 crore allocated for society amenities.

• Settling Resettlers’ Claims: An estimated ₹18.59 crore has been allocated to provide monetary compensation, including rent of ₹22,000 per month for 12 months and a corpus of ₹4 lakh for each of the 280 resettlers. Additionally, a flat valued at ₹1 crore will be handed over to the resettlers’ society.

• Operational and Government Creditors: The plan proposes 5% and 10% settlement ratios for government dues and operational creditors, respectively.

• Contingency Fund: ₹10 crore has been set aside to address disputes related to canceled units, double sales, and pending litigation before the NCLT.

• No Payment to Related Parties: The tribunal upheld the resolution plan’s exclusion of related party claims, including a ₹52.3 crore claim from Hive Carbon Zero Developers Pvt. Ltd., citing Supreme Court rulings that support the CoC’s commercial wisdom in such matters.

The NCLT observed that the plan met all statutory requirements under Section 30(2) of the IBC and relevant regulations. Citing past Supreme Court judgments, the tribunal reiterated that it could not interfere with the CoC’s commercial decisions unless the resolution plan violated legal provisions.