The Supreme Court on May 11 gave the go-ahead to the resolution plan submitted by Supertech Limited and decided not to interfere with the National Company Law Appellate Tribunal (NCLAT) order of June 2022 that allowed the company to raise funds on priority basis and complete the projects.
It also allowed the NCLAT’s order of no formation of a Committee of Creditors (CoC) and not to proceed with the Insolvency Bankruptcy Code (IBC) bidding process.
Supertech had conveyed to both NCLAT and the Supreme Court that it had arranged priority funding of up to Rs 1,600 crore from investment fund Oaktree Financial for the construction and completion of the projects.
The NCLAT, in its interim order of June 2022, limited the scope of the Corporate Insolvency Resolution Process (CIRP) to one project, Eco Village-II, with the condition that construction will be carried out by Supertech Limited.
“Result of the directions of the impugned order dated 10.06.2022 is that except the Eco Village-II project, all other projects of the corporate debtor are to be kept as ongoing projects and the construction of all other projects is to be continued under the supervision of the IRP with the ex-management, its employees and workmen. Infusion of funds by the promoter in different projects is to be treated as interim finance, regarding which total account is to be maintained by IRP,” the Supreme Court said on May 11.
R K Arora, Chairman of Supertech Group, welcomed the SC order and said that this is a landmark decision in favour of all stakeholders ― homebuyers, Authorities, lenders and other financial creditors as the Resolution Plan took care of all liabilities of the company to be discharged in three years while giving priority to completion of projects and giving delivery of flats to homebuyers. The company will complete all projects and give delivery of flats within the next two years, he said on May 11.
The NCLAT, in its interim order of June 2022, had ordered starting of insolvency proceedings in only one of the housing projects of realty firm Supertech and not the entire company, and directed constitution of a CoC for the said project only. A two-member NCLAT bench limited the CIRP to only the Eco Village-II project, located in Greater Noida (West).
NCLAT, on April 12, had stayed the formation of the CoC as the promoters had sought some time to settle the matter with their financial creditors.
On March 25, the Delhi bench of the National Company Law Tribunal (NCLT) had ordered initiating the CIRP against Supertech over a petition filed by Union Bank of India for non-payment of dues of around Rs 432 crore. Supertech later filed an appeal before the NCLAT challenging the NCLT ruling.
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