NCLT admits ₹164.03 crore insolvency plea against ESPO Developers

The National Company Law Tribunal (NCLT) New Delhi Bench has admitted a Corporate Insolvency Resolution Process (CIRP) plea filed by Omkara Asset Reconstruction Pvt. Ltd. against ESPO Developers Pvt. Ltd. The plea, valued at ₹164.03 crore, was admitted after the tribunal determined that financial debt and default had been established under the Insolvency and Bankruptcy Code (IBC).

The case stems from a ₹136 crore loan facility provided to ESPO Developers by Indiabulls Housing Finance Ltd. in January 2019. Although the parties had entered into a Settlement Agreement in March 2023, Omkara ARC claimed the agreement was revoked in July 2024 due to the corporate debtor's failure to meet specific milestone requirements.

ESPO Developers contested the petition, arguing that their liabilities had been settled through payments totaling ₹77.03 crore and that the matter was subject to ongoing arbitration. However, the tribunal rejected these claims, noting that the conditions for admitting the insolvency petition under section 7(5)(a) of the IBC were met. Mr. Ashok Mittal has been appointed as the Interim Resolution Professional (IRP).