Supertech lender rejects settlement proposal; NCLAT to decide on insolvency

Punjab & Sind Bank, the lead lender of Supertech Township Projects, has rejected the settlement proposal and NCLAT will now take a final decision on the insolvency of the debt-ridden realty firm.

Counsel representing Ram Kishore Arora, the suspended director of the realty firm informed NCLAT on Thursday about the rejection of the settlement proposal.

"Counsel for the appellant (Arora) submits that they have received the communication from Punjab & Sind Bank that the proposal submitted by the appellant is not acceptable," noted an NCLAT order recording the submissions.

A three-member bench of the National Company Law Appellate Tribunal (NCLAT) said it will have to take a "final decision" in the matter as the appeal has been pending for the last several months.

"As a last opportunity, one-week time is allowed to the appellant," said NCLAT directing to list the matter on January 23 for the next hearing.

Supertech Township Projects is developing a Group Housing Project - Golf Country at Yamuna Expressway, Greater Noida, UP.

The bench, which also comprised Chairperson Justice Ashok Bhushan, said the interim order passed by it earlier would continue.

During the proceedings of NCLAT, the registered homebuyers association submitted that the homebuyers also did not agree with the settlement proposal by Arora.

Another set of homebuyers submitted that they do not support the insolvency of Supertech Township Projects.

Recording these submissions, NCLAT said: "Be that as it may, we have to take a final decision in the matter the appeal having been pending for last several months."  On July 30, NCLAT stayed the insolvency proceedings against Supertech Township Projects after the realty firm proposed to settle its disputes with Punjab & Sind Bank.

The Corporate Insolvency Resolution Process (CIRP) was initiated by the Delhi bench of the National Company Law Tribunal (NCLT) against Supertech Township Projects admitting a plea filed by the lender over a default of Rs 216.92 crore and had appointed an interim resolution professional to run the company.

This was challenged by Arora before NCLAT, which on July 30, 2024 had stayed the insolvency proceedings against Supertech Township Projects after it proposed to settle its disputes with the lender.