The National Company Law Tribunal has directed to initiate insolvency proceedings against Supertech Township Projects on a plea filed by Punjab & Sind Bank over a default of Rs 216.92 crore. This is the third group firm of Ram Kishor Arora-led realty major Supertech to go through the Corporate Insolvency Resolution Process (CIRP).
Earlier in June this year, the National Company Law Tribunal (NCLT) directed to initiate CIRP against Supertech Realtors, which is developing residential apartments, offices, retail and luxury hotels at its “Supernova” projects.
In March 2022, CIRP was initiated against Supertech Ltd.
On July 12, a Delhi-based NCLT bench admitted the plea against Supertech Township Projects filed by Punjab & Sind Bank and appointed Umesh Singhal as the Insolvency Resolution Professional.
Supertech Township Projects is developing a Group Housing Project – Golf Country at Yamuna Expressway, Greater Noida, Uttar Pradesh.
The cost of the project was estimated at around Rs 1,500 crore and was proposed to be financed by a term loan of Rs 340 crore, promoter’s contribution of Rs 453.04 crore and Rs 706.93 crore advance booking amount from a customer.
For that, Punjab & Sind Bank sanctioned a term loan of Rs 140 crore for part financing of the Project on March 18, 2013. Supertech Township had agreed to repay the Term Loans as per the respective sanction letters of the lenders.
But, contrary to the terms and conditions, it failed to maintain financial discipline and defaulted….Besides various other breaches and violations of the sanction of the said credit limit was done and consequently, a huge outstanding became due and payable, Punjab & Sind Bank submitted.
Due to continuous default on the part of the Corporate Debtor, its account was classified as a “Non-Performing Asset” on June 30, 2018.
This was opposed by the realty firm, contending that the plea was filed without proper authority and was time-barred as the banks had declared it as NPA way back in June 2018.
In December 2022, it had proposed a settlement offer of paying 75 per cent towards all the dues, which was rejected by the Financial Creditor and almost 5 years later, filed the present petition.
However, the NCLT rejected Supertech Township Projects contentions and said though it had declared NPA in June 2018, the debtor had acknowledged it in the balance sheet of Financial Years 2018-19, 2019-20 and 2020-21.
Moreover, it had also issued an OTS proposal on January 17, 2022, which was not accepted by the lenders. Thereafter, further negotiation took place, and again a combined OTS was submitted, which was also rejected by the lender in a consortium meeting.
“Further, the Corporate Debtor issued a one-time settlement proposal on 06 December 2022, thereby acknowledging its debt. The said OTS was subsequently rejected by the Financial Creditors,” the NCLT said, adding that “if there is an acknowledgement of debt in writing within a limitation period, a fresh limitation period as per section 18 of Limitation Act commences from the date of the acknowledgement of debt”.
The NCLT also said that “despite declaring the account as an NPA in 2018, six years have elapsed without any proactive efforts from the Corporate Debtor to complete the project”.
It further said the debt and default have been established in this case.
“The Applicant Bank/financial creditor is entitled to move the application against the corporate debtor in view of outstanding financial debt in default above the pecuniary threshold limit as provided…the present company application stands admitted, and the CIRP is hereby, initiated against Supertech Township Projects Limited,” the NCLT ordered.
Source: Economic Times