In a significant relief to thousands of homebuyers, the Supreme Court of India has upheld the order of the National Company Law Appellate Tribunal (NCLAT) directing NBCC to complete 16 stalled residential projects of debt-ridden Supertech Ltd.
The apex court, in its final order delivered on February 5, 2026, restrained all courts and tribunals from passing any directions that could stall or obstruct the execution of the NBCC-led completion plan. The decision impacts nearly 51,000 homebuyers who have been awaiting possession of their flats for over a decade.
Years of delay
Supertech launched and pre-sold several large residential projects between 2010 and 2012 across Noida, Greater Noida, Gurugram and other cities. However, mounting debt, project delays and financial stress led to stalled construction across multiple developments.
In 2021, insolvency proceedings were initiated against the company under the Insolvency and Bankruptcy Code (IBC). Despite efforts to find a resolution applicant, the process failed to translate into physical completion of the projects, leaving thousands of buyers without homes.
NCLAT’s construction-first order
In December 2024, the NCLAT adopted an execution-focused approach and directed NBCC to take over and complete the stalled housing projects under the supervision of an expert committee. The tribunal observed that conventional insolvency resolution mechanisms had failed to deliver outcomes for homebuyers and that a construction-led framework was necessary.
The order marked a shift from creditor-centric insolvency resolution to prioritising physical delivery of housing units.
Supreme Court’s final directions
Upholding the NCLAT’s directive, the Supreme Court held that the appellate tribunal’s order was consistent with the IBC and did not suffer from legal infirmity. The bench invoked its powers under Article 142 of the Constitution to ensure “complete justice” for affected homebuyers.
The court issued key directions:
- NBCC will complete all 16 stalled Supertech projects.
- No tribunal or High Court shall pass interim directions that impede construction.
- Homes must be delivered with all promised amenities, including utilities and infrastructure.
- Claims of financial and operational creditors will be considered after full completion and handover of residential units.
The court also clarified that stakeholders may approach the Supreme Court directly if any impediment arises during execution.
What happens next?
With legal barriers removed, the focus now shifts to execution. NBCC, a government-owned construction enterprise, is expected to implement a phased completion roadmap based on the expert committee’s recommendations.
However, practical challenges remain. Several projects involve partially completed structures requiring structural audits, renewed regulatory approvals and contractor mobilisation. Utilities and civic infrastructure will need to be fully operational before possession can be granted.
Funding arrangements will also play a critical role in sustaining construction momentum. Reports indicate that project execution will follow structured financial oversight mechanisms.
Wider implications
The ruling may have broader implications for India’s real estate insolvency landscape. By sequencing homebuyer delivery ahead of creditor recovery, the Supreme Court has signalled a pragmatic approach in large residential insolvencies where value is intrinsically tied to project completion.
The Supertech resolution model could influence how other large stalled housing portfolios are addressed, particularly in cases where conventional insolvency pathways fail to yield timely outcomes.
For affected homebuyers, the order represents a decisive step towards closure after years of uncertainty. The success of the judicially backed model will now depend on timely and efficient on-ground execution.
References
1. LiveLaw – Supreme Court Upholds NCLAT Order Directing NBCC To Complete Stalled Supertech Housing Projects
https://www.livelaw.in/top-stories/supreme-court-upholds-nclat-order-directing-nbcc-to-complete-stalled-supertech-housing-projects-522030
2. Economic Times (Legal) – SC Upholds NCLAT Order To Rescue Supertech Homebuyers
https://legal.economictimes.indiatimes.com/news/litigation/supreme-court-upholds-nclat-order-to-rescue-supertech-homebuyers/127932198
3. Indian Express – Supreme Court Upholds NCLAT Order Entrusting Supertech Projects To NBCC
https://indianexpress.com/article/legal-news/supreme-court-nclat-order-supertech-unfinished-projects-nbcc-10516763/
4. Moneycontrol – Supreme Court Orders NBCC To Complete Supertech Homes
https://www.moneycontrol.com/news/business/companies/supreme-court-orders-nbcc-to-complete-supertech-homes-ends-20-year-wait-for-homebuyers-13813764.html
Note: Ai generated image