In a surprising turn, the National Company Law Tribunal (NCLT) in Mumbai has reignited the corporate insolvency resolution process (CIRP) for Lavasa Corporation, dismissing a plea from Darwin Platform Infrastructure Ltd (DPIL). The firm, which had previously won the bid to take over the Pune-based city project, stumbled after failing to meet its financial commitments.
The tribunal, composed of Judicial Member Kuldip Kumar Kareer and Technical Member Anil Raj Chellan, ruled that the resolution process would be revived and directed the Committee of Creditors (CoC) to adjust the timeline, excluding a period between July 2021 and January 2022. The tribunal also reinstated Shailesh Verma as the resolution professional overseeing the case.
Lavasa Corporation, initially backed by Hindustan Construction Company, has been marred by a series of regulatory and financial setbacks. These obstacles came to a head in August 2018, when the company entered insolvency after a petition from Raj Infrastructure Development India Private Limited.
DPIL’s plan to revive Lavasa, approved by the NCLT in July 2023, had promised a ₹1,814 crore package with an initial ₹100 crore payment due within 90 days. But DPIL’s failure to deliver on this upfront payment became a focal point of the ongoing conflict. In April 2024, ICICI Bank, representing the creditors, invoked a ₹25 crore guarantee, citing DPIL’s inability to execute the resolution.
DPIL argued that Lavasa’s “active, non-compliant” status in government records and pending litigation hindered its ability to secure funds for the acquisition. However, the tribunal was unimpressed by these claims, noting that DPIL never raised these issues in the seven Monitoring Committee meetings where the firm was repeatedly pressed to meet its payment obligations.
The NCLT expressed its frustration with DPIL, stating that the firm “miserably failed to take any positive action” and that granting more time would only harm stakeholders further. The tribunal underscored that DPIL’s failure to follow through warranted the invocation of the ₹25 crore Performance Bank Guarantee, which Union Bank of India promptly encashed.
The tribunal dismissed DPIL’s reasoning about Lavasa’s non-compliant status with the Ministry of Corporate Affairs, making it clear that payment obligations under a resolution plan cannot be tied to such issues. The ongoing legal battles around Lavasa were similarly ruled irrelevant by the court, which noted that litigation is a routine element in insolvency cases and doesn’t justify delays unless there is a formal stay order.
With the CIRP revived, the case marks a significant reset in Lavasa’s long, troubled path through insolvency. The tribunal’s message was clear: further stalling will not be tolerated.
