Tribunal stays bankruptcy proceedings against Supertech Township project

NCLAT has admitted the bank’s plea about dues of ₹216 crore, Supertech assured an appropriate plan would be submitted to Punjab and Sind Bank within seven days

The National Company Law Appellate Tribunal (NCLAT) stayed the corporate insolvency resolution proceedings (CIRP) against Supertech Township Projects Limited after it proposed to settle its disputes with Punjab and Sind Bank, its principal financial creditor, within seven days.

In pursuance of the impugned order no further steps shall be taken (related with insolvency) except collation of claims which have already been invited, said the order delivered by NCLAT chairperson on Tuesday. (Virendra Singh Gosain/HT Photo (Representative image))

“In the meantime, in pursuance of the impugned order no further steps shall be taken (related with insolvency) except collation of claims which have already been invited,” said the order delivered by NCLAT chairperson justice Ashok Bhushan, member technical Barun Mitra and member technical Arun Baroka on Tuesday.

NCLAT has posted the matter to August 21, 2024, for further hearing.

“The counsel for the appellant (Supertech Township) submits that the appellant is taking steps to settle the entire dispute with the financial creditor (Punjab and Sind Bank) and within seven days from today, an appropriate proposal shall be submitted to the Punjab and Sind Bank, the financial creditor herein. It is further submitted that 75% of development has already taken place and state of Uttar Pradesh has introduced zero policy scheme and the corporate debtor also intend to take benefit of the said scheme,” reads the order, which further says that the counsel for the homebuyers also support the proposal.

The NCLAT last week admitted the bank’s plea regarding dues of ₹216 crore. Supertech assured that within seven days, an appropriate plan would be submitted to Punjab and Sind Bank.

The tribunal was also briefed on the status of the development projects under the company’s purview.

The developer informed that 75% of the development work had already been completed in its Golf Country project in Sector 22D, in the Yamuna authority region. Additionally, the company intends to benefit from the zero policy scheme recently introduced by Uttar Pradesh, which could play a pivotal role in the settlement process.

Supertech Township was allotted 100 acres in 2011 for developing a township project. The project, involving approximately 3,200 homebuyers, is incomplete.

The Punjab and Sind Bank last year approached the National Company Law Tribunal (NCLT) for initiation CIRP against Supertech Township on the grounds that the realtor had defaulted in paying ₹216 crore up to June 30, 2023.The cost of the project was estimated to be around ₹1,499.97 crore, proposed to be financed by a term loan of ₹340 crore, promoter’s contribution of ₹453.04 crore and advance booking from customer of ₹706.93 crore.

The bank sanctioned a term loan of ₹140 crore for part financing of the project. The NCLT on July 12 accepted the bank’s plea and appointed an interim resolution professional to carry out the CIRP.

“Our Supertech Township projects in Sector 22D Golf Country was admitted before the NCLT on July 12. We got the NCLT’s order stayed from NCLAT on Tuesday as we are settling our dues with our lenders,” said RK Arora, chairman, Supertech Group.