The National Company Law Appellate Tribunal (NCLAT) has upheld a February 2025 order of the National Company Law Tribunal (NCLT), which dismissed the initiation of insolvency proceedings against Noida-based Logix Infrastructure, the developer behind the long-delayed Blossom County project in Sector 137, Noida.
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Why was the insolvency plea dismissed?
The appellate tribunal ruled that the insolvency petition filed under the Insolvency and Bankruptcy Code (IBC) was a fraudulent misuse of law, designed not to recover dues but to shield the developer from financial liabilities.
NCLAT observed that Experts Realty Professionals—the financial creditor that filed the petition—was a related party of Logix Infrastructure. The tribunal noted collusion, calling the plea “a guise” to protect Logix from dues owed to homebuyers and the Noida Authority.
In its order, the bench comprising Justice N Seshasayee and Arun Baroka stated:
“The petition under the IBC was fraudulent and aimed at protecting Logix from its obligations. We find that there are clear fraudulent activities and collusion in the business transactions.”
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Key findings of the tribunal
- Fraudulent loan agreement: The tribunal concluded that the alleged financial deal lacked safeguards, registration, and collateral, suggesting it was not a genuine loan.
- Overlapping directorships: Hemant Sharma, earlier associated with Experts Realty, joined Logix Infrastructure soon after resigning, highlighting a conflict of interest.
- Balance sheet discrepancies: Experts Realty had listed its ₹15 crore investment as “current investments,” not as a loan, further weakening its claim.
- Voting rights in question: By projecting itself as a financial creditor, Experts Realty sought 21% voting rights in the Committee of Creditors (CoC), which it could not claim as a homebuyer.
Financial implications
With the appellate tribunal affirming NCLT’s findings, Experts Realty must now:
- Pay the ₹55 lakh penalty earlier imposed by NCLT to the Prime Minister’s National Relief Fund (PMNRF).
- Bear the entire cost of the Corporate Insolvency Resolution Process (CIRP).
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The Blossom County case
Blossom County, launched in 2010 as a 17-tower residential project with 2,384 units, remains one of Noida’s most delayed projects. Of the planned towers, only 10 have received occupancy certificates. The project, originally scheduled for completion in 2013, has left hundreds of homebuyers stranded for over a decade.
Meanwhile, dues of over ₹500 crore remain pending with the Noida Authority, even as homebuyers allege Logix sold all flats, collected funds, and diverted money elsewhere.
How the dispute started
- In October 2020, Experts Realty invested ₹15 crore in Logix, in exchange for 1.4 lakh sq. ft. of space with a buy-back option.
- In December 2021, Logix acknowledged a liability of ₹13 crore, promising repayment within a month with 18% monthly interest on default.
- However, the agreement was never properly registered or stamped.
Despite these gaps, Experts Realty filed for insolvency in April 2023. The plea was initially admitted by NCLT in July 2023 but struck down in February 2025, with NCLAT now reaffirming that dismissal.
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Reaction from stakeholders
- Experts Realty’s counsel, Advocate Ketan Madan, termed the decision “pervasive and completely misconceived,” adding that they intend to challenge it in the Supreme Court.
- Homebuyers, on the other hand, welcomed the ruling, having long alleged collusion between Logix and Experts Realty.
- Logix Infrastructure’s promoter, Shakti Nath, distanced himself from the company, stating, “We are no more associated with Logix Group. Mrityunjay Jha is the director.”
The National Company Law Appellate Tribunal (NCLAT) has upheld a February 2025 order of the National Company Law Tribunal (NCLT), which dismissed the initiation of insolvency proceedings against Noida-based Logix Infrastructure, the developer behind the long-delayed Blossom County project in Sector 137, Noida.
Also read:-Ghaziabad Municipal Corporation Property Tax: Online Payment, Discounts & Online Process
Why was the insolvency plea dismissed?
The appellate tribunal ruled that the insolvency petition filed under the Insolvency and Bankruptcy Code (IBC) was a fraudulent misuse of law, designed not to recover dues but to shield the developer from financial liabilities.
NCLAT observed that Experts Realty Professionals—the financial creditor that filed the petition—was a related party of Logix Infrastructure. The tribunal noted collusion, calling the plea “a guise” to protect Logix from dues owed to homebuyers and the Noida Authority.
In its order, the bench comprising Justice N Seshasayee and Arun Baroka stated:
“The petition under the IBC was fraudulent and aimed at protecting Logix from its obligations. We find that there are clear fraudulent activities and collusion in the business transactions.”
Also read:-Municipal Tax on Commercial Property: Pay Online | Rules
Key findings of the tribunal
- Fraudulent loan agreement: The tribunal concluded that the alleged financial deal lacked safeguards, registration, and collateral, suggesting it was not a genuine loan.
- Overlapping directorships: Hemant Sharma, earlier associated with Experts Realty, joined Logix Infrastructure soon after resigning, highlighting a conflict of interest.
- Balance sheet discrepancies: Experts Realty had listed its ₹15 crore investment as “current investments,” not as a loan, further weakening its claim.
- Voting rights in question: By projecting itself as a financial creditor, Experts Realty sought 21% voting rights in the Committee of Creditors (CoC), which it could not claim as a homebuyer.
Financial implications
With the appellate tribunal affirming NCLT’s findings, Experts Realty must now:
- Pay the ₹55 lakh penalty earlier imposed by NCLT to the Prime Minister’s National Relief Fund (PMNRF).
- Bear the entire cost of the Corporate Insolvency Resolution Process (CIRP).
Also read:-How to Change the Name in Property Tax Record? | Housiey
The Blossom County case
Blossom County, launched in 2010 as a 17-tower residential project with 2,384 units, remains one of Noida’s most delayed projects. Of the planned towers, only 10 have received occupancy certificates. The project, originally scheduled for completion in 2013, has left hundreds of homebuyers stranded for over a decade.
Meanwhile, dues of over ₹500 crore remain pending with the Noida Authority, even as homebuyers allege Logix sold all flats, collected funds, and diverted money elsewhere.
How the dispute started
- In October 2020, Experts Realty invested ₹15 crore in Logix, in exchange for 1.4 lakh sq. ft. of space with a buy-back option.
- In December 2021, Logix acknowledged a liability of ₹13 crore, promising repayment within a month with 18% monthly interest on default.
- However, the agreement was never properly registered or stamped.
Despite these gaps, Experts Realty filed for insolvency in April 2023. The plea was initially admitted by NCLT in July 2023 but struck down in February 2025, with NCLAT now reaffirming that dismissal.
Also read:-MCGM Property Tax: Download | Payment Online | Tax Bill
Reaction from stakeholders
- Experts Realty’s counsel, Advocate Ketan Madan, termed the decision “pervasive and completely misconceived,” adding that they intend to challenge it in the Supreme Court.
- Homebuyers, on the other hand, welcomed the ruling, having long alleged collusion between Logix and Experts Realty.
- Logix Infrastructure’s promoter, Shakti Nath, distanced himself from the company, stating, “We are no more associated with Logix Group. Mrityunjay Jha is the director.”
