The Insolvency Appellate Tribunal (NCLAT) has given additional time to Supertech Township Projects, a real estate firm in financial trouble, to circulate a settlement proposal to its lenders and homebuyers. Ram Kishore Arora, the suspended director of the firm, now has two more weeks to complete and share the proposal.
NCLAT suggested that Supertech should also publish the settlement proposal on its website to ensure all concerned stakeholders can access it. “In view of the fact that Appellant is circulating a proposal for resolution of the project to the bank as well as to the homebuyers, we grant two weeks opportunity to the Appellant to complete the proposal and circulate it to the bank as well as to all the homebuyers,” said a three-member NCLAT bench.
The bench will review the proposal after the two-week period and will consider its acceptance after hearing the views of the lenders and homebuyers involved in the appeal. “On the next date, we will consider whether the proposal submitted deserves to be accepted or not after hearing the counsel for the lenders as well as the homebuyers who have filed applications in the appeal. Any objection to the proposal may also be filed by all,” the bench said.
This direction came after the counsel representing Punjab and Sind Bank mentioned that they had not received any proposal from Arora. However, Arora’s counsel said a proposal ensuring 100% payment of the bank’s dues was already submitted and highlighted that an investor is prepared to clear the bank’s debt and continue the halted construction project.
The insolvency case pertains to a real estate project that could not be completed on time. According to Arora’s counsel, over 500 possessions have been handed over. The court expressed that its main concern is whether the project can be completed by any means, as insolvency would be the last resort.
Earlier, on July 30, NCLAT had paused insolvency proceedings against Supertech Township Projects after it proposed a settlement with Punjab and Sind Bank. This decision followed an order by the National Company Law Tribunal (NCLT) to start insolvency proceedings based on a plea by the bank over a default of Rs 216.92 crore.
This case marks the third instance where a firm from Ram Kishore Arora’s Supertech Group is undergoing the Corporate Insolvency Resolution Process (CIRP). CIRP was initiated against Supertech Ltd. in March 2022.
Source: Economic Times