SC turns down plea to bring entire Supertech group under insolvency proceedings | India News – Times of India

NEW DELHI: Observing that it will to “cause immense hardship” and “uncertainty” to the home buyers if all the projects of real estate giant Supertech is brought within the insolvency proceedings, the Supreme Court on Thursday directed in its interim order that only one of its projects–Ecovillage 2 in Greater Noida West –would be proceeded under Insolvency and Bankruptcy Code(IBC).
In a relief to thousands of homebuyers who booked flats in other projects of the Supertech, a bench of Justices Dinesh Maheshwari and Sanjay Kumar down the plea of financial creditors of Supertech to constitute Committee of Creditors for the entire group and not just of one project as ordered by National Company Law Appellate Tribunal (NCLAT).
“If at the present stage, on the submissions of the appellants, CoC is ordered to be constituted for the corporate debtor as a whole in displacement of the directions of the Appellate Tribunal, it is likely to affect those ongoing projects and thereby cause immense hardship to the home buyers while throwing every project into a state of uncertainty. On the other hand, as indicated before us, the other projects are being continued by the IRP and efforts are being made for infusion of funds with the active assistance of the ex-management but without creating any additional right in the ex-management. In our view, greater inconvenience is likely to be caused by passing any interim order of constitution of CoC in relation to the corporate debtor as a whole; and may cause irreparable injury to the home buyers,” the bench said.
The top court said that the course adopted by by the tribunal under which except Eco Village-II project, all other projects of the corporate debtor are to be kept as ongoing projects and the construction of all other projects is to be continued under the supervision of the IRP with the ex-management, its employees and workmen. It said the arrangement should not be disturbed for the time being.
Th creditors–Union Bank of India and Indiabulls Asset and Reconstruction Company Ltd—contended that the appellate tribunal did not have power under IBC to allow project-wise CIRP and does not have power to accept a resolution plan presented by the promoter without giving opportunity to the CoC.It was also contended that there was no concept of projectwise resolution under IBC .
It said that appellate tribunal order would continue to operate subject to the final orders to be passed by the court and also directed that with regard to Eco Village -II project any process beyond voting on the resolution plan should not be undertaken without specific orders from it.

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