The National Company Law Appellate Tribunal (NCLAT) has said that the Committee of Creditors (COC) will be limited to Eco Village project of the company and other projects will continue to be constructed by the developer.
The proceedings against realty developer Supertech was initiated for default on the payment of Rs 431 crore to a consortium of banks.
The order will give relief to homebuyers as about 7000 home buyers belonging to different associations, had sought immediate intervention of NCLAT to allow the promoters of Supertech to carry on construction to meet the construction and delivery timelines.
“NCLAT in interim has directed that CoC to be limited to Eco village-2 for now and all other projects will be ongoing and under supervision of the IRP. Status report will be filed by the IRP before next date. All amounts required to be sanctioned and disbursed with permission of IRP only,” said Aditya Parolia, partner at PSP Legal.
Next date of hearing is July 27.
The appeal (RK Arora vs Union Bank of India) was filed by the ex-management of the Supertech challenging the CIRP process initiated by NCLT and was heard last week on 3rd of June 2022.
PSP Legal represented numerous buyers in these proceedings and had put forward their submissions.
“On arriving at the decision the Appellate Tribunal has considered the interest of homebuyers who had opposed the initiation of CIRP as they were skeptical about continuation of construction activities in projects under the CIRP,” said R K Arora, Chairman of Supertech Group.
“The Company will now focus on implementing the Resolution Plan by clearing the debts, completing the projects and delivering the units to allottees,” said Arora.
The NCLT had appointed Hitesh Goel as the insolvency resolution professional (IRP) for Supertech.
According to the petition, Supertech had in 2013 availed of a credit facility of Rs 350 crore from the consortium of banks to part fund its Eco Village II project in Greater Noida. Union Bank’s exposure to the credit facility was Rs 150 crore.
As per the petition, Supertech was irregular in repaying the debt and completely stopped paying from July 2019. The amount claimed in the petition includes interest as well.
The company, which is in the process of demolishing two towers at another Noida project on a Supreme Court order, has multiple under-construction projects in the National Capital Region.
