The Chennai Bench of National Company Law Tribunal (NCLT) has ordered the liquidation of city-based developer Hallmark Living Space Private Ltd, after lenders could not find any bidders for revival of the company as part of the resolution process.
Case filed by L&T
Last year, the NCLT had directed the commencement of insolvency process against the firm in a case filed by Larsen & Toubro Ltd.
Under the insolvency proceedings, maximum 270 days time frame is given for finding a resolution plan for the company. If it fails, the firm goes in for liquidation.
The company was constructing Hallmark Emerald residential project in Chettipunniyam, GST Road, opposite to Mahindra World City. According to sources, it was a ₹200-crore project and it had 860 flats, with around 60 flats already booked.
Larsen & Toubro, which undertook the construction, had filed the insolvency proceedings for non-payment of dues of about ₹25 crore. According to the firm, home buyers have claims worth over ₹8 crore in the project. The Bank of India, which is lender to the project, had a claim of over ₹61 crore. Besides, other promoter group firms and employees have claims against the company.
NCLT has appointed S. Dhanapal as company liquidator. The liquidator has called for submission of claims from stakeholders of Hallmark Living on or before September 21, 2018.
