NCLAT Dismisses Insolvency Appeal by Spaze Towers Promoters

The National Company Law Appellate Tribunal (NCLAT) rejected an appeal by Spaze Towers' former promoters to limit insolvency proceedings to the Spaze Arrow project alone. The tribunal upheld the earlier NCLT order, which initiated insolvency proceedings due to Spaze Towers' failure to complete projects, affecting multiple claimants.

In a significant ruling, the National Company Law Appellate Tribunal (NCLAT) on Tuesday dismissed an appeal by former promoters of Spaze Towers. The promoters sought to confine the Corporate Insolvency Resolution Process (CIRP) to just one project, Spaze Arrow, instead of multiple ongoing projects.

The initial directive for insolvency proceedings came from the National Company Law Tribunal (NCLT) on October 21, 2024. The tribunal responded to a plea by homeowners, citing the company's inability to complete and deliver projects as promised, notably the Spaze Arrow project in Gurugram.

The NCLAT's dismissal emphasizes the tribunal's stand that claims related to another project, Spaze Corporate Park, must also be addressed. Previously, in 2021, Spaze Towers had faced insolvency issues, but resolved them without full disclosure. The latest decision underscores ongoing financial and operational challenges within Spaze Towers.