Mumbai NCLT allows 90-day extension of insolvency resolution for Lavasa Corp

Mumbai: The Mumbai bench of National Company Law Tribunal (NCLT) has allowed a 90-day extension in the ongoing consolidated corporate insolvency resolution process (CIRP) of Lavasa Corp beginning May 29.

The planned city project is undergoing a fresh CIRP after the NCLT, in September 2024, directed that the entire process be restarted, following the successful bidder's failure to implement the approved resolution plan within the specified time frame. The company has admitted liabilities of more than ₹6,642 crore, while the erstwhile successful bidder, Darwin Platform Infrastructure, had proposed to pay ₹1,814 crore.

"We are of the view that the present application deserves to be allowed," the division bench of judicial member Ashish Kalia and technical member Sanjiv Dutt observed on June 2. "Since the CIRP is at an advanced stage and resolution plans have already been submitted by PRAs (prospective resolution applicants), which are required to be considered by the CoC (committee of creditors), the extension is being sought in the interest of value maximisation and to ensure that the objectives of the Code (Insolvency and Bankruptcy Code) are duly met."