New Delhi, Jan 23 (IANS): In a major relief for the promoters of realty group Raheja Developers, the National Company Law Appellate Tribunal (NCLAT) has halted the insolvency proceedings against the company and has also ordered the transfer of the company's management to its Board of Directors.

The developer had moved the appellate tribunal after the National Company Law Tribunal (NCLT) held the company to be in default of its obligations to two home buyers who had approached the tribunal.

"The aforesaid facts also make it clear that the 1st and 2nd Respondents (the home buyers) filed the application under Section 7, fraudulently with malicious intent for the purpose other than for the resolution or liquidation and they knocked at the doors of the adjudicating authority for refund of money and not for the Flat/ premises and thereby wanted to jump ship and really get back the amount, by way of coercive measure," the order said.

The three-judge bench headed by NCLAT Chairman S.J. Mukhopadhaya also said: "The appellant 'Corporate Debtor' (company) is released from all the rigours of 'moratorium' and is allowed to function through its Board of Directors from immediate effect."

The 'interim resolution professional' will hand over the assets and records to the Board of Directors, it said.

The bench further observed that in the language of the Supreme Court, the allottees in a large number of cases are speculative investors and not a person who is genuinely interested in purchasing a flat.

"They do not want to go ahead with its obligation to take possession of the apartment under RERA, but want to jump ship and really get back, by way of this coercive measure, monies already paid by it."