The Municipal Corporation of Greater Mumbai (MCGM) appealed against the order of the National Company Law Appellate Tribunal (NCLAT), which rejected MCGM's plea regarding a resolution plan approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 (IBC). The dispute arose from a contract between MCGM and SevenHills Healthcare (P.) Ltd. (SevenHills), where SevenHills agreed to develop MCGM's land and construct a 1500-bed hospital. SevenHills faced insolvency proceedings initiated by Axis Bank due to its inability to repay debts. MCGM issued a show cause notice to terminate the contract due to non-completion of the project and non-payment of lease rent. The NCLT admitted the insolvency petition and appointed a Resolution
…MCGM owned plots of land in Mumbai, which it contracted to lease to SevenHills Healthcare for 30 years to construct a 1500-bed hospital. The contract, dated December 20, 2005, stipulated that 20% of the beds should be reserved for the economically deprived. SevenHills was to complete construction within 60 months, but the project was not completed by the deadline of April 24, 2013. A lease deed was to be executed within a month after completion, but this did not occur. SevenHills defaulted on lease rent payments, leading MCGM to issue a show cause notice on January 23, 2018, proposing termination of the contract. SevenHills owed MCGM ₹76,05,07,780. SevenHills borrowed from banks and financial institutions, creating security by way of mortgage on the land. Axis Bank
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MCGM and SevenHills Healthcare (P.) Ltd.…
The deadline for the…
The Municipal Corporation of Greater Mumbai (MCGM) appealed against the order of the National Company Law Appellate Tribunal (NCLAT), which rejected MCGM's plea regarding a resolution plan approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 (IBC). The dispute arose from a contract between MCGM and SevenHills Healthcare (P.) Ltd. (SevenHills), where SevenHills agreed to develop MCGM's land and construct a 1500-bed hospital. SevenHills faced insolvency proceedings initiated by Axis Bank due to its inability to repay debts. MCGM issued a show cause notice to terminate the contract due to non-completion of the project and non-payment of lease rent. The NCLT admitted the insolvency petition and appointed a Resolution
…MCGM owned plots of land in Mumbai, which it contracted to lease to SevenHills Healthcare for 30 years to construct a 1500-bed hospital. The contract, dated December 20, 2005, stipulated that 20% of the beds should be reserved for the economically deprived. SevenHills was to complete construction within 60 months, but the project was not completed by the deadline of April 24, 2013. A lease deed was to be executed within a month after completion, but this did not occur. SevenHills defaulted on lease rent payments, leading MCGM to issue a show cause notice on January 23, 2018, proposing termination of the contract. SevenHills owed MCGM ₹76,05,07,780. SevenHills borrowed from banks and financial institutions, creating security by way of mortgage on the land. Axis Bank
…MCGM and SevenHills Healthcare (P.) Ltd.…
The deadline for the…