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NCLAT grants two weeks for Supertech Township's settlement proposal
Real Estate

NCLAT grants two weeks for Supertech Township's settlement proposal

The National Company Law Appellate Tribunal (NCLAT) has given an additional two weeks to the suspended director of debt-ridden Supertech Township Projects, Ram Kishore Arora, to circulate the company's settlement proposal to its lenders and homebuyers. The tribunal has also directed the realty firm to publish the proposal on its website to ensure it is accessible to all stakeholders.

In its order, the three-member NCLAT bench stated: “Considering the fact that the Appellant is circulating a proposal for the resolution of the project to both the bank and homebuyers, we grant an additional two weeks for the Appellant to complete the proposal and circulate it to both parties.”

The tribunal further indicated that it would assess the proposal in the next hearing to determine its acceptability after listening to the objections raised by both the lenders and homebuyers. The bench invited any objections to be filed before the hearing.

The NCLAT's direction follows a statement by Punjab and Sind Bank's counsel, who noted that the bank had not yet received any settlement proposal from Arora. However, Arora’s counsel clarified that a proposal had been submitted, which includes a plan for 100% repayment of the bank’s dues. Additionally, Arora has secured an investor willing to clear the bank’s debt and resume the stalled construction of the project, which has been delayed for several years.

The insolvency case pertains to the incomplete real estate project, which was delayed beyond the promised timeline. Arora’s counsel mentioned that over 500 units had been handed over, but the primary concern remains the completion of the project, failing which insolvency would be the only option.

In July 2024, NCLAT had paused insolvency proceedings against Supertech Township Projects after the company expressed its intent to settle the dispute with Punjab and Sind Bank. The insolvency case was originally initiated following a Rs 2.16 billion default, leading to a plea from the bank.

This is the third entity of the Supertech group, led by Ram Kishore Arora, to undergo the Corporate Insolvency Resolution Process (CIRP). In March 2022, Supertech Ltd. also entered CIRP.

(HT)

The National Company Law Appellate Tribunal (NCLAT) has given an additional two weeks to the suspended director of debt-ridden Supertech Township Projects, Ram Kishore Arora, to circulate the company's settlement proposal to its lenders and homebuyers. The tribunal has also directed the realty firm to publish the proposal on its website to ensure it is accessible to all stakeholders. In its order, the three-member NCLAT bench stated: “Considering the fact that the Appellant is circulating a proposal for the resolution of the project to both the bank and homebuyers, we grant an additional two weeks for the Appellant to complete the proposal and circulate it to both parties.” The tribunal further indicated that it would assess the proposal in the next hearing to determine its acceptability after listening to the objections raised by both the lenders and homebuyers. The bench invited any objections to be filed before the hearing. The NCLAT's direction follows a statement by Punjab and Sind Bank's counsel, who noted that the bank had not yet received any settlement proposal from Arora. However, Arora’s counsel clarified that a proposal had been submitted, which includes a plan for 100% repayment of the bank’s dues. Additionally, Arora has secured an investor willing to clear the bank’s debt and resume the stalled construction of the project, which has been delayed for several years. The insolvency case pertains to the incomplete real estate project, which was delayed beyond the promised timeline. Arora’s counsel mentioned that over 500 units had been handed over, but the primary concern remains the completion of the project, failing which insolvency would be the only option. In July 2024, NCLAT had paused insolvency proceedings against Supertech Township Projects after the company expressed its intent to settle the dispute with Punjab and Sind Bank. The insolvency case was originally initiated following a Rs 2.16 billion default, leading to a plea from the bank. This is the third entity of the Supertech group, led by Ram Kishore Arora, to undergo the Corporate Insolvency Resolution Process (CIRP). In March 2022, Supertech Ltd. also entered CIRP. (HT)

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