Insolvency appellate tribunal NCLAT on Wednesday said it will wait for the decision of lenders on a revised settlement offer by Supertech Realtors, which is developing a residential apartment, offices, retail and luxury hotels at its Supernova project.
NCLAT also directed the Interim Resolution Professional (IRP) not to constitute a Committee of Creditors. However, it said the construction work for the project would be continued under the supervision of IRP.
A three-member NCLAT bench observed that Supertech Realtors submitted an one-time settlement (OTS), and the lead bank principally agreed with the proposal and the proposal is under consideration by the consortium of banks.
"In the meantime, we direct that the Committee of Creditors be not constituted. However, the ongoing project may be continued under the supervision of the IRP and the IRP shall extend all cooperation by the Corporate Debtor, its officers and employees in carrying out the construction," said the 8-page NCLAT order.
The National Company Law Appellate Tribunal further said bank accounts of the Supertech Realtors "shall be operated only with the joint signature of the IRP, only to carry out construction".
The interim order came while hearing the appeal filed by Ram Kishore Arora, director of the suspended board of Supertech Realtors, challenging the order passed by the National Company Law Tribunal (NCLT) last month.
A Delhi bench of NCLT had admitted the insolvency plea filed by the Bank of Maharashtra over a default of Rs 168.04 crore and appointed Anju Agarwal as interim resolution professional (IRP), suspending the board of Supertech Realtors, a step-down subsidiary of Supertech.
The appellate tribunal issued notices asking lenders to file replies within three weeks and listed the matter for further hearing on August 8, 2024.
Supertech Realtors, a subsidiary of Supertech, is developing the Supernova project at a cost of Rs 2,326.14 crore on a land measuring 70,002 square metres at Sector 94, Noida.
Supertech is also facing a Corporate Insolvency Resolution Process (CIRP).
As per the plans, the Supernova project will have 80 floors and will be the tallest building in Delhi-NCR at a height of 300 metres.
During the proceedings of the NCLAT, the counsel appearing for Supertech Realtors said he is not raising any dispute regarding the debt and default to Bank of Maharashtra.
He said the realty firm has submitted a proposal to the Consortium of Lenders for settlement of dues from the investor, namely Kotak Advisors Ltd, via an ARC (asset reconstruction companies) sale.
The offer made by Supertech Realtors was 75 per cent of the running ledger book balance of the consortium lenders and the lead bank acknowledged the receipt of the revised proposal.
A meeting of lenders' was held on March 18, 2024, in which the Bank of Maharashtra also participated. Union Bank of India, the lead bank, after taking note of the proposal has principally agreed with the proposal, Supertech Realtors' counsel submitted.
However, Bank of Maharashtra representatives sought time to consult their head office and inform them about their decision.
Supertech Realtors submitted that as the proposal has been principally accepted by the lead bank and is under consideration, no purpose be served in initiating a Corporate Insolvency Resolution Process against it.
He further submitted Supernova Project is 80 per cent complete and an investor has also offered to infuse funds for the construction and completion of the project.
However, counsel appearing for the Bank of Maharashtra submitted that the OTS proposal of the Corporate Debtor, which the bank earlier approved, was not honoured by the realty firm.
NCLAT said: "In the facts of the present case, we are of the view that the revised OTS proposal, which was submitted by Corporate Debtor and which is under consideration of the Consortium of Bank and lead Bank having principally agreed with the offer, it is appropriate to await the decision of Consortium of Members and the decision of lead Bank, with regard to OTS proposal in order to proceed further in the matter." The appellate tribunal further observed that Supernova is an ongoing project and more than 600 unit holders have been allotted units and rest of the project shall be completed by the realty firm with the agreed offer and amount to be infused by Kotak.
"We are of the view that decision of Consortium of Bank as well as the decision of lead Bank on the revised offer submitted by the Corporate Debtor from Investor, Kotak Advisors Ltd needs to be awaited, for which purpose, we are of the view that Appeal needs to be heard after four weeks to enable the parties to bring on record the decision of Joint Lenders' Meeting on the revised offer as noted above," it said.
In December 2012, a term loan of Rs 150 crore was granted. The term loan was repayable in quarterly installments in the consolidated door-to-door tenor for 10 years and 4 months by March 2023.
However, Supertech Realtors failed to maintain financial discipline and defaulted in properly maintaining the said accounts in addition to committing other breaches and violations of the credit limit, leading to accumulation of huge outstanding.
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