Yeida withdraws plea at NCLAT against Ace Infracity’s bid for Three C Homes

This follows Yeida’s agreement with Ace Infracity Developers’ proposal to compensate farmers.

July 9, 2024: The Yamuna Expressway Industrial Development Authority (Yeida) has retracted its appeal from the National Company Law Appellate Tribunal (NCLAT) against an NCLT order that approved Ace Infracity’s bid for Three C Homes. This follows Yeida’s agreement with Ace Infracity Developers’ proposal to compensate farmers. Yeida and Ace Infracity were negotiating a settlement while the appeal was pending before NCLAT.

 

On July 4, 2024, Yeida proposed a compensation plan for farmers, which Ace Infracity accepted during the NCLAT hearing. NCLAT noted, “In view of the acceptance of the proposal by the SRA (Ace Infracity), the appellant (YEIDA) is not to proceed with its appeal subject to compliance with the conditions as indicated in the communication dated July 4, 2024, which has been given to counsel for the SRA.” NCLAT further stated, “Recording the aforesaid, we are of the view that no useful purpose shall be served in continuing with the appeals. The appeal is permitted to be withdrawn with liberty to revive.”

 

As part of the settlement, Ace Infracity will compensate the farmers. Initially, Yeida cancelled the land allotment in January 2021, which Three C Homes’ resolution professional, Gaurav Katiyar, contested before NCLT. NCLT restored the land allotment in January 2023 and subsequently approved Ace Infracity’s resolution plan in June 2023. NCLT dismissed Yeida’s objections, stating the Rs 670 million brought in by the corporate debtor was sufficient to settle their dues. Yeida then challenged this NCLT order at NCLAT.

 

The Corporate Insolvency Resolution Process (CIRP) against Three C Homes began in September 2019. On June 13, 2023, NCLT approved Ace Infracity’s Rs 1.4 billion resolution plan. The fair value of Three C Homes was Rs 6 billion, and the liquidation value was Rs 4.8 billion as per Form-H filed with the application. NCLT highlighted that Ace Infracity’s bid had been approved by the Committee of Creditors (CoC) with 100% votes, emphasising that it could not “interfere with the commercial wisdom” of the lenders. However, this decision was contested by Yeida at NCLAT.

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