The National Company Law Tribunal (NCLT) has ordered the initiation of insolvency proceedings against realty firm Santasha Real Estate. The order came on a plea filed by Vani Advertising, an operational creditor to the company that has claimed a default of Rs 40.77 lakh. Admitting the plea, a two-member New Delhi bench of the NCLT appointed an interim resolution professional after suspending the board of the real estate firm. Vani Advertising, in its petition filed through its counsel Namit Saxena, had submitted that an amount of Rs 40.77 lakh was due on the real estate firm in return for the advertising services provided by it.

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The advertising company had completed the work within the stipulated time frame as per the contract. However, the payment was not made in time and remains pending, as per the plea. "In the given fact and circumstances, the present application is complete and the operational creditor is entitled to claim its dues, which remain uncontroverted by the corporate debtor (Santasha Real Estate), establishing the default in payment of operational debt beyond doubt. "The present application is admitted, in terms of section 9 of IBC 2016," NCLT said.

Section 9 of the IBC 2016 gives power to the operational creditors of a company to initiate corporate insolvency resolution process in case of a default. NCLT conducted the proceedings ex-parte in the matter.