Bombay HC orders liquidation of Mantri Realty’s assets

Bombay-High-Court

The Bombay High Court has directed the official liquidator to initiate the process of liquidating assets of realty developer Mantri Realty, including its head office in south Mumbai and 12 cars, to repay the company’s unsecured creditors.

The builder is currently entangled in legal matters related to default on Rs 300 crore dues towards these creditors. Mantri Realty, which had defaulted on payments for two years, had reached out to the lenders to negotiate and settle the claims after the court had appointed an official liquidator for all the company’s assets. However, the lenders are not keen to settle the matter out of court and have not given their consent for settlement terms offered by Mantri Realty. The court, in a recent order, has asked the official liquidator to appoint a valuer for the purpose of valuing movable and immovable assets at the developer’s registered office at south Mumbai’s New Marine Lines and 12 cars parked at the developer’s project Mantri Serene in Goregaon suburb of Mumbai.

“The court has observed that all unsold flats will remain in its legal custody and whether they will be sold by public auction or private treaty will be decided at a later date. However, the sale proceeds of all those flats will come into the hands of the liquidator for the satisfaction of creditors claim,” said Anil Agarwal, lawyer representing some of the unsecured lenders, who have moved the Bombay High Court against the developer.

The balance sheet annexed by the developer to the petition for settlement shows unsecured creditors worth Rs 329.31 crore as on March 31, 2015. However, the settlement offered by the developer is for 536 creditors worth Rs 166.945 crore, Agarwal said. The court has also directed the official liquidator to take possession of four flats owned by Mantri Realty in Ruby Terrace building located at Walkeshwar locality in south Mumbai. The liquidator, in addition, has also directed to ascertain the exact status of the Mantri Realty’s redevelopment project involving Ruby Terrace.

Source: ET Realty

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