The Supreme Court has temporarily stayed an NCLAT order that appointed NBCC to oversee the construction of stalled homes by Supertech Ltd. This decision raises concerns for over 27,000 home buyers awaiting their properties, as the court will further examine the legal procedures involved.
- Supreme Court halts NCLAT’s directive for NBCC.
- Over 27,000 home buyers affected by stalled projects.
Supreme Court’s Intervention Raises Stakeholder Concerns
On February 22, 2025, the Supreme Court’s bench, led by Chief Justice Sanjiv Khanna, issued a stay on the National Company Law Appellate Tribunal (NCLAT)’s order that directed the National Buildings Construction Corporation (NBCC) to manage Supertech Ltd’s 16 delayed housing projects. The court is particularly concerned about the implications for home buyers, as nearly 49,748 homes in Uttar Pradesh, Uttarakhand, Haryana, and Karnataka are at stake. Chief Justice Khanna emphasized the need to evaluate whether the NCLAT adhered to due process under the Insolvency and Bankruptcy Code.
R K Arora, chairman of Supertech group, welcomed the Supreme Court’s decision, stating, “We respect the decision of the Supreme Court to stay the NCLAT order, which allowed NBCC to take over Supertech’s projects arbitrarily without respecting the interests of other stakeholders.” This highlights the broader implications of the Supreme Court’s ruling on various stakeholders, including home buyers, lenders, and land authorities.
The NCLAT’s Initial Directive and Its Implications
The NCLAT, in its December 2024 order, tasked NBCC with completing the 16 projects that are currently stalled due to Supertech’s financial woes. Under the directive, NBCC was expected to start awarding contracts by March 31, 2025, with construction slated to commence by May 1, 2025. However, the Supreme Court’s intervention complicates these timelines.
The NCLAT had previously authorized NBCC to manage the projects in phases, aiming to resolve a backlog that has persisted since Supertech entered insolvency proceedings in 2021. The company faces claims of over Rs 431 crore from Union Bank of India, which initiated the insolvency process. The stalled projects have left many home buyers in limbo, and the Supreme Court’s ruling may provide a much-needed examination of the best path forward for all parties involved.
Future Projections: What Lies Ahead for Supertech and Home Buyers
The stay on the NCLAT order suggests a complex future for Supertech and the home buyers awaiting possession of their properties. The Supreme Court has called for written responses from all parties regarding alternative solutions for the stalled projects, which may lead to new proposals that better consider the interests of all stakeholders.
