NCLAT Grants Additional Two Weeks for Circulation of Settlement Proposal
The National Company Law Appellate Tribunal (NCLAT) has granted an extension of two weeks to Ram Kishore Arora, the suspended director of Supertech Township Projects. Arora has been given this additional time to circulate a settlement proposal among the company’s lenders and homebuyers. The NCLAT has recommended that the proposal be published on the company’s website for the ease of access for all stakeholders involved.
Review of Proposal During Next Hearing
In the upcoming hearing, the NCLAT plans to review the proposal submitted by Arora. During the review, input from the counsel representing lenders and homebuyers who have filed applications in the appeal will also be taken into consideration. The NCLAT bench has urged any objections to the proposal to be submitted in advance.
Punjab and Sind Bank Yet to Receive Proposal
During the hearing, the counsel for Punjab and Sind Bank stated that they have not yet received any proposal from Ram Kishore Arora. However, Arora’s counsel clarified that a proposal for the full payment of the bank’s dues has indeed been submitted. Moreover, it was noted that an investor is prepared to pay off the bank’s debt and recommence construction on the stalled project.
Insolvency Case Escalates
The insolvency case against Supertech Township Projects stems from prolonged delays in completing the real estate project. The court expressed concerns about the lack of a mechanism to complete the project and stated that if no such solution is found, insolvency would become the only remaining alternative.
Court Stays Insolvency Proceedings in July
At an earlier hearing on July 30, the NCLAT had put a stay on the insolvency proceedings against Supertech Township Projects following a proposal from Ram Kishore Arora to settle the disputes with Punjab and Sind Bank. However, prior to that, in March 2022, the National Company Law Tribunal (NCLT) had initiated insolvency proceedings against Supertech Ltd., another firm led by Ram Kishore Arora.
The initiation of the Corporate Insolvency Resolution Process (CIRP) against Supertech Township Projects is the third instance of such action against firms associated with Ram Kishore Arora-led Supertech. This reflects the challenges faced by the group in resolving ongoing issues and completing their real estate projects.
