The National Company Law Appellate Tribunal (NCLAT) On June 10,2022 ordered starting of insolvency proceedings in only one of the housing projects of realty firm Supertech Ltd and not the entire company.
A two-member NCLAT bench limited the Corporate Insolvency Resolution Process (CIRP) to only “Eco Village II Project” located at Greater Noida (West).
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On March 25, the Delhi bench of the National Company Law Tribunal (NCLT) had ordered to initiate the CIRP against Supertech Ltd over a petition filed by the Union Bank of India for non-payment of dues of around Rs 432 crore. However, this was challenged by Supertech promoter R K Arora before NCLAT.
NCLAT on April 12,2022 stayed the formation of CoC as the promoters have sought some time to settle the matter with their financial creditor.
“The Committee of Creditors of Eco Village II project shall start the process for resolution of Eco Village II project. The IRP shall separate the claims received with regard to the Eco Village II project and prepare an ‘information memorandum’ accordingly and proceed for the meeting of the CoC as per the Code,” said NCLAT.
It has also directed that even for Eco Village II project, the “IRP shall carry the project and continue the project as an ongoing project by taking all assistance from the ex-management, employees, workmen etc.”
“We however make it clear that other projects apart from the Eco Village II project shall proceed as ongoing project basis under the overall supervision of the IRP,” said the NCLAT bench.
Supertech had offered to make an upfront payment of Rs 10 crore with 10 crore on acceptance of OTS (One-Time Settlement) and Rs 55 crore for exclusive security. However, it did not materialise as the bank had asked to deposit Rs 75 crore as upfront to consider the OTS.
NCLAT in its 21-page interim order observed that as per the status report filed by the IRP, it is clear that in the 20 projects, which Supertech is executing, substantial units have been sold.
