The Insolvency appellate tribunal NCLAT has granted two weeks more time to debt-ridden realty firm Supertech Township Projects suspended director Ram Kishore Arora to circulate the settlement proposal to both its lenders and home buyers.
The National Company Law Appellate Tribunal (NCLAT) also suggested the realty firm facing insolvency proceedings to publish the settlement proposal on its website so that it can be accessed by all concerned stakeholders.
"In view of the fact that Appellant is circulating a proposal for resolution of the project to the bank as well as to the homebuyers, we grant two weeks opportunity to the Appellant to complete the proposal and circulate it to the bank as well as to all the homebuyers," said a three-member NCLAT bench.
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The bench further said, "On the next date, we will consider whether the proposal submitted deserves to be accepted or not after hearing counsel for the lenders as well as the homebuyers who have filed applications in the appeal. Any objection to the proposal may also be filed by all."
NCLAT direction came on Thursday after the counsel representing Punjab and Sind Bank said it has not received any proposal on behalf of Ram Kishore Arora, promoters of Supertech Township Projects Ltd.
Arora's counsel said that a proposal has been submitted for 100 per cent payments of dues of the bank which is mentioned in the application to the Bank.
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He further said that Arora has secured an investor who is ready to pay off the bank's debt and continue the construction of the project, which has been halted for several years.
Insolvency case is related to the real estate Project and the case is started after the project has not been completed within time, he said.
"Counsel for the Appellant submits that more than 500 possessions have been handed over. Be that as it may, the court’s primary concern is whether by any mechanism project can be completed, failing which, insolvency is the only alternative left," NCLAT observed in its order.
On July 30, NCLAT had stayed the insolvency proceedings against Supertech Township Projects after it proposed to settle its disputes with Punjab and Sind Bank.
Earlier, the National Company Law Tribunal (NCLT) had also directed to initiate insolvency proceedings against Supertech Township Projects on a plea filed by Punjab & Sind Bank over a default of Rs 216.92 cr.
This is the third group firm of Ram Kishore Arora-led realty major Supertech to go through the Corporate Insolvency Resolution Process (CIRP).
In March 2022, CIRP was initiated against Supertech Ltd.
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