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NAME: Himanshu Maheshwari Roll No: 22 Course: Cf-Ii

1. The document discusses the acquisition of surplus land from the Khatau Mills in Mumbai by Adani Enterprise Limited (AEL) and its subsidiary Adani Realty, now known as Adani Township and Real Estate Corporation Limited (ATRECO). 2. ATRECO filed a petition in the Ahmedabad court to legally transfer the rights to the Khatau Mills land for construction and development, which was approved. 3. The discussion in the lecture highlighted that prior to the Insolvency and Bankruptcy Code (IBC) of 2016, the insolvency and bankruptcy process in India was complex and not transparent, whereas the IBC provides a centralized governing framework.

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Amisha Jain
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63 views1 page

NAME: Himanshu Maheshwari Roll No: 22 Course: Cf-Ii

1. The document discusses the acquisition of surplus land from the Khatau Mills in Mumbai by Adani Enterprise Limited (AEL) and its subsidiary Adani Realty, now known as Adani Township and Real Estate Corporation Limited (ATRECO). 2. ATRECO filed a petition in the Ahmedabad court to legally transfer the rights to the Khatau Mills land for construction and development, which was approved. 3. The discussion in the lecture highlighted that prior to the Insolvency and Bankruptcy Code (IBC) of 2016, the insolvency and bankruptcy process in India was complex and not transparent, whereas the IBC provides a centralized governing framework.

Uploaded by

Amisha Jain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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NAME: Himanshu Maheshwari

ROLL NO: 22
COURSE: CF-II

BORIVALI PROPERTY OF KHATAU MILLS, MUMBAI


The Khatau Group of Companies is one of the oldest business conglomerates in India. The Khatau
Group was founded in 1874 by Seth Khatau Makanji (also known as Makanji Khatau). This
business family prospered into one of the leading Indian industrial houses by the mid twentieth
century, with ventures in textiles, chemicals, shipping, cement, aviation, automobile, and other
industries. Before IBC came into being in 2016, Every time, a distinct governing authority was to
be rushed for. There was no centralisation where during a single body was responsible to execute
all the processes of insolvency and bankruptcy. Here, the method of a company/business going total
bankrupt is taken into consideration, where it wasn’t ready to sustain its position within the market
due to continuous losses made by the company. Adani Enterprise Limited (AEL), Adani Realty,
now, Adani Township and Real Estate Corporation Limited (ATRECO) was into the process of
acquiring surplus Khatau Mills land for its interest to construct and develop the area of the mill so
as to enter the real estate market of Mumbai and compete with the existing players like
Hiranandani’s, Raheja’s, etc. Since it's risked its capital investment together with Marathon
Builders to amass the land, ATRECO filed a petition under its jurisdiction within the court of
Ahmedabad and ruling came move into favour of ATRECO. Immediate action was taken and
therefore the rights legally were transferred to ATRECO for construction and development.
ATRECO saw the chance and bought the land of the mills. During interaction with the promoter of
Khatau mills, the promoter didn’t have the right to require and make the selections on behalf of its
shareholders and stakeholders. Also, there are some small disputes, still lingering which are to be
taken care of. the entire point of this discussion during the lecture conducted by our professors was
that, before IBC 2016, the method of insolvency and bankruptcy was complex and not that
transparent. IBC 2016 could be a centralized governing law which nominates and takes care of all
the insolvency and bankruptcy process at one go. promoter was the acting authority who didn’t
even had the right to delegate all decision but he did, resulting into the dispute mentioned above.
IBC doesn’t allow the promoters to urge into delegation for decisions associated with insolvency
which is that the key highlighted difference of the discussion. All the previous acts are now extinct
and IBC is that the whole and sole law for insolvency process. Thus, as per the priority existed
during that period under the BIFR act, ATRECO & Marathon waivered of huge debt by paying the
secured creditors and lenders first. Then, the employees and labourers were paid their salary which
was at a halt from the past and it was a big relief for them.

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