NCLT Kochi Records Interim Payment Plan To Ensure Access To Jatayupara Tourism Project

The National Company Law Tribunal (NCLT), Kochi Bench, has recently recorded and accepted an interim arrangement for payment of dues to a landowner to ensure uninterrupted access and continued operation of the Jatayupara Tourism Project (JTP), noting that denial of access would render the project unusable.

The order was passed by Judicial Member Vinay Goel on an application filed by an NCLT-appointed Chartered Accountant assigned, pursuant to directions of the Supreme Court, to verify and approve necessary operational expenses of the project.

The application sought approval of an interim arrangement to avoid disruption to the functioning of the project. JTP is a Build-Operate-Transfer project of the Government of Kerala involving multiple entities, including Jatayupara Tourism Private Limited (JTPL) and Guruchandrika Builders & Property Private Limited (GBPL).

The dispute centred on land forming the entrance, parking area and essential access to the project. The landowner claimed arrears of approximately Rs.7.66 crore and has already initiated civil proceedings for recovery. The applicant submitted that any restriction of access would effectively halt the project, making urgent intervention necessary.

To prevent disruption, the applicant proposed an interim arrangement involving payment of Rs.1 crore towards past dues along with a monthly compensation of Rs.1.5 lakh. While the landowner initially objected, he subsequently filed a memo before the tribunal, pursuant to its earlier direction, agreeing to the arrangement and undertaking to refund the amount if the dispute is ultimately decided against him.

Recording this development, the tribunal observed: “Considering that uninterrupted access through the subject land is indispensable for the continued operation of the project, and further noting that the parties have now arrived at a workable interim arrangement, this Tribunal is of the view that the said arrangement deserves to be ”

The tribunal accordingly recorded and accepted the interim arrangement and directed that the agreed amounts be disbursed by the applicant/administrator from the common pool account, subject to necessary approvals and proper accounting procedures.

Clarifying that it was not adjudicating the merits of the dispute, the tribunal held that the arrangement is purely interim in nature and subject to the outcome of pending civil proceedings and other disputes between the parties. It further directed that payments be made within the prescribed timeline and that no obstruction be caused to access the project.

The application was disposed of in these terms.