Providing some relief to Supertech Ltd, the National Company Law Appellate Tribunal (NCLAT) on Tuesday stayed the constitution of the committee of creditors under insolvency proceedings till April 19 as the real estate developer sought time to hold talks with banks. .
During the proceedings before the Appellate Tribunal, Supertech Limited The lawyer requested to adjourn the matter for a week so that he can approach the bank for talks.
“On their request, this appeal may be listed on the next Tuesday i.e. 19.04.2022. Till the next date, the IRP will not constitute the CoC.” NCLAT BenchChaired by the Chairman Justice Ashok Bhushan, said.
The NCLAT direction came on a petition filed by suspended board director Ram Kishore Arora of Supertech Ltd against the order passed by the National Company Law Tribunal on March 25. Arora expressed satisfaction over the interim order passed by the NCLAT.
According to him, the NCLAT has taken into account the concerns of all stakeholders, including home buyers.
On March 25, the Delhi bench of the NCLT initiated insolvency proceedings against Supertech Ltd on a petition filed by Union Bank of India for non-payment of dues of approx. 432 crores.
The NCLT had also appointed Hitesh Goyal as Interim Resolution Professional (IRP) by superseding the board of Supertech Ltd.
The default pertains to a loan given by Union Bank of India for the Eco Village II project in Greater Noida (West) in Uttar Pradesh, which was being developed at a cost of Rs. 1,106.45 crores. Supertech Limited owns 38,041 flats and has delivered 27,111 flats out of them.
Supertech group managing director Mohit Arora said last month that 10,930 homes are yet to be delivered and of those, over 70 per cent construction has been completed in respect of over 8,000 homes.
The formation of the CoC is an important step for the Corporate Insolvency Resolution Process (CIRP) under the IBC (Insolvency and Bankruptcy Code). Once the NCLT initiates CIRP against a debt-ridden firm, it appoints an Interim Resolution Professional (IRP) after suspending the firm’s board.
Article 18 of the IBC states that it is the duty of the IRP to constitute a committee on the basis of all claims received against the corporate debtor and the determination of the financial position of the corporate debtor.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.