New Delhi: Real estate developer Supertech was declared bankrupt by National Company Law Tribunal (NCLT) on Friday in a move that could have an effect on 25,000 home buyers. The company law tribunal took the decision in respose to a petition filed by the Union Bank of India for non-payment of dues.
In response, the developer stated that it will file an appeal with the National Company Law Appellate Tribunal (NCLAT) against the NCLT move.
The NCLT is the authority for insolvency resolution process of companies under the Insolvency and Bankruptcy Code (IBC). NCLT’s decision can be appealed at the NCLAT.
The NCLT appointed Hitesh Goel as the insolvency resolution professional (IRP) for Supertech under the Insolvency and Bankruptcy Code (IBC). The tribunal had reserved its order in the case on March 17, 2022 after the one time settlement proposed by Supertech was rejected by the bank and arguments were heard.
“In the matter of appointment of IRP in one of the Supertech Group Companies, by the National Company Law Tribunal (NCLT), management of the Company stated that the Company will be approaching NCLAT in appeal against the order as the matter belongs to a financial creditor. In the interest of homebuyers, preference was given to construction and delivery of projects over repayment of bank dues which can be fulfilled after project completion. As all the projects of the Company are financially viable, there is no chance of loss to any party or financial creditor. The order will not affect operations of any other Supertech Group Company,” it said in a statement.
The company said that the NCLT order will not impact the construction at all ongoing projects or operation of the company and “we are committed to giving delivery of units to allottees. We have a strong record of delivering more than 40000 Flats during the last 7 years and we shall continue to give delivery to our buyers under our “Mission Completion – 2022″ under which we have undertaken a target of delivering 7000 Units by December, 2022.”
Once a company is admitted to the corporate insolvency resolution process there is a moratorium on all pending civil, consumer, RERA cases, including executions till resolution is achieved.
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