NCLAT upholds insolvency proceedings against Supertech Realtors

NCLAT has upheld an NCLT order to begin insolvency proceedings against Supertech Realtors over a ₹168 crore default, rejecting a revised settlement proposal from its promoter

Insolvency proceedings against Supertech Realtors can be started, according to the verdict of the National Company Law Appellate Tribunal (NCLAT).

 

The company is a subsidiary of realty firm Supertech, which, along with some other group firms, is also facing insolvency proceedings.

 

In doing so, the tribunal has upheld the order of the Delhi Bench of the National Company Law Tribunal (NCLT), which had, on June 12, 2024, directed the initiation of the insolvency proceedings against Supertech Realtors on a petition by Bank of Maharashtra, claiming a default of ₹168 crore. 

 

“We, thus, upheld the order of the Adjudicating Authority (NCLT) ... The period during which this appeal remained pending, ie from June 18, 2024, till today (Wednesday), shall be excluded from the CIRP (Corporate Insolvency Resolution Plan) process. The IRP (interim resolution professional) may constitute the CoC (Committee of Creditors) and proceed with the CIRP in accordance with the law. Subject to above, the appeal (of Supertech) is dismissed,” a Bench of Chairperson Justice Ashok Bhushan and Member (Technical) Barun Mitra held.

 

For funding, Supertech sought ₹735.58 crore from a bank consortium led by Union Bank of India.

 

The company approached the Bank of Maharashtra for ₹150 crore to partially finance residential apartments, offices, retail space, and a luxury hotel in the project.

 

On December 14, 2012, the bank sanctioned a term loan of ₹150 crore.

 

When the company failed to repay, its account was classified as a non-performing asset on September 28, 2018.

 

On April 8, 2022, the Bank of Maharashtra filed a Section 7 (of the Insolvency and Bankruptcy Code) application against Supertech Realtors, citing a default of ₹168 crore. During the case, Supertech offered a one-time settlement (OTS) on June 15, 2022, acknowledging the debt.

 

Although the bank approved the OTS, it cancelled it for non-compliance. 

 

The Delhi High Court on November 17, 2022, dismissed Supertech’s challenge to the cancellation, and the Supreme Court upheld this on December 15 the same year.

 

Supertech made another OTS on February 9, 2024, offering ₹310 crore to settle all lenders’ dues. 

"No comment from our side," the spokesperson of Supertech said.