Supertech insolvency: Company law tribunal stays formation of committee of creditors till April 19
India Today
In a big relief to Supertech Ltd and homebuyers, the Delhi-bench of National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed the formation of the committee of creditors under the insolvency proceedings till April 19.
The Delhi-bench of National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed the formation of the committee of creditors (CoC) under the insolvency proceedings till April 19 and issued notices to parties, giving a sigh of relief to Supertech Ltd. Listing the appeal till April 19, the NCLAT said that IRP shall not constitute the CoC during the stay period. The NCLAT stayed the formation of a committee under the insolvency proceedings till April 19 as the real estate developer sought time to negotiate with banks.
On March 25, the NCLAT initiated insolvency proceedings against Supertech Ltd after the Union Bank of India filed a petition over the non-payment of dues worth Rs 432 crore.
The appeal was filed by Ram Kishor Arora who expressed satisfaction over the interim order passed by NCLAT. He said that NCLAT has taken into consideration the concerns of all stakeholders, including homebuyers. Earlier, the homebuyers had sought immediate intervention of NCLAT to address their concerns.
The case pertains to the loan given by the Union Bank of India to the Eco Village II project at Greater Noida. The project was being developed at a total cost of Rs 1,106.45 crore.
With this, the fate of around 11,000 housing units became uncertain. Most of the buyers were skeptical about the capability of the persons appointed by NCLT to complete a large number of projects which were being developed by Supertech Limited. They cited no definite commitment on schedule of construction or delivery timeline from the appointed agency.
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Approximately 7000 home buyers belonging to different Home Buyer Associations had sought immediate intervention of NCLAT to allow the Promoters of Supertech to carry on construction so as to meet the construction and delivery timelines.
