NCLT Approves Oberoi Construction’s Acquisition of Nirmal Lifestyle Realty

                The National Company Law Tribunal (NCLT) 
has given the go-ahead for the acquisition of 
Nirmal Lifestyle Realty by Oberoi Realty’s 
affiliate, Oberoi Constructions. This resolution 
plan 
involves Oberoi Constructions disbursing 
approximately ₹273 crore to cover dues owed 
to the financial, operational, and other creditors 
of Nirmal Lifestyle. The company had entered 
the corporate insolvency resolution process 
(CIRP) back in December 2021, with 
outstanding claims surpassing ₹748 crore.
As per the tribunal’s verdict issued on Friday, 
all existing equity shares of Nirmal Lifestyle 
Realty will be annulled, effectively resetting the 
company's share capital to zero. Oberoi 
Constructions will subsequently inject ₹1 lakh 
into the company by purchasing new equity 
shares, thereby obtaining full ownership of 
Nirmal Lifestyle Realty.
A crucial element of this plan involves securing 
necessary permissions or clarifications related 
to a land parcel owned by Nirmal Lifestyle 
Realty situated within the eco-sensitive zone 
of the Sanjay Gandhi National Park, located in 
the Mumbai suburbs. The resolution plan 
stipulates that these permissions must be 
secured from the appropriate authorities within 
180 
days of the NCLT’s approval. Failure to obtain 
these permissions will render the resolution 
plan void, and Oberoi Constructions will be 
absolved of all obligations. In such an event, 
any 
deposits or securities provided by Oberoi 
Constructions will be refunded.
The legal team from ANM Global, consisting of 
Shyam Kapadia, Sikha Ginodia, and Gaurav 
Suryavanshi, represented the resolution 
professional Jayesh Sanghrajka in this matter. 
The tribunal also addressed ongoing legal 
proceedings involving Nirmal Lifestyle Realty, 
directing the management of claims and 
benefits from these proceedings to be handled 
by the 
committee of creditors (CoC). Oberoi 
Constructions will not benefit from these 
proceedings, ensuring that the new 
management takes over without any 
operational encumbrances.
Additionally, the NCLT has mandated that the 
scheme of arrangement and amalgamation 
between Nirmal Lifestyle Realty and Oberoi 
Constructions be filed separately for formal 
approval. While components of this scheme 
are part of the resolution plan, it must undergo 
a distinct procedural review.
The tribunal's ruling also includes provisions 
for the transfer of records and documents to 
Oberoi Constructions, and the continuation of 
a monitoring committee. This committee will 
oversee the resolution process to ensure 
compliance and a smooth transition during the 
takeover period.
This decision by the NCLT not only addresses 
the immediate financial challenges faced by 
Nirmal Lifestyle Realty but also sets a standard 
for corporate restructuring under the 
Insolvency and Bankruptcy Code (IBC). By 
approving the resolution plan, the tribunal 
underscores the significance of regulatory 
compliance and structured resolution 
processes in 
managing corporate insolvency.

Source : RealtyNxt