NCLT admits Supertech ORB to insolvency resolution process

The National Company Law Tribunal (NCLT) at Prayagraj admitted Supertech ORB, a project developed by the debt ridden Supertech group to insolvency on October 13.

The order was passed in a plea filed by Assets Care and Reconstruction Enterprises Limited (ACRE) for defaulting in repayment of a debt of Rs. 482 crore, which includes both principle and interest. Shailendra Ajmera, the resolution professional of Go First has been appointed as Supretech's interim resolution professional.

ACRE had argued that Altico Capital Ltd, whose loans it had acquired, had sanctioned a loan of Rs 349 crore to Supertech ORB in 2017. The company, however, defaulted in making repayments as per the schedule contemplated in the loan agreement, which led to ACRE issuing a acceleration and enforcement notice in September 202. Subsequently, the parties arrived at a settlement and executed a settlement agreement, according to which a few units of Project Cape Town were to be transferred to ACRE by December 2021. However since Supertech ORB did not do so, they terminated the agreement in April 2022.

Supretech ORB had contended that ACRE was not revealing the entire set of facts and noted that they are engaged in the second round of settlement talks and are hopeful about a positive outcome. Furthermore, it was contended that ACRE is pursuing this litigation with the sole purpose of coercing Supertech ORB to agree to their terms in the settlement process.