NCLAT Upholds NCLT Order, Paves Way for Supertech Realtors' Insolvency Proceedings
The National Company Law Appellate Tribunal (NCLAT) has upheld the National Company Law Tribunal (NCLT) order, clearing the way for insolvency proceedings against Supertech Realtors, the developer of the Supernova project in Noida. The decision follows a petition filed by Bank of Maharashtra over a default claim.
NclatInsolvency ProceedingsSupertech RealtorsSupernova ProjectReal EstateReal Estate MaharashtraAug 14, 2025
The petition was filed by Bank of Maharashtra, claiming default on a significant loan. A two-member NCLAT bench ruled that the revised proposal submitted by Supertech's promoter, Ram Kishore Arora, for settlement was not accepted by the Consortium of Banks. The bench stated, 'We are of the view that the present is a case where the resolution of the Corporate Debtor (Supertech Realtors) has to be undertaken as per the I&B Code and CIRP Regulations, 2016, in accordance with law. We, thus, upheld the order of the Adjudicating Authority (NCLT) admitting the Section 7 application and dismissing the appeal.'
NCLAT also gave the green light to the interim resolution professional appointed by NCLT to constitute the Committee of Creditors (CoC) and proceed with the CIRP in accordance with the law. Supertech Realtors is a subsidiary of the real estate firm Supertech, which is also facing insolvency proceedings along with some other group companies. The Supernova project, with an estimated cost of Rs 2,326.14 crore, is spread over 70,002 square metres in Sector 94, Noida. The project is planned to have 80 floors and will be the tallest building in Delhi-NCR at a height of 300 metres.
Earlier, NCLAT had put the process of constituting the CoC on hold on July 3, 2024, over Arora's plea. He had not raised any dispute regarding the debt and default of Bank of Maharashtra. With assistance from investor M/s Kotak Advisors, Supertech submitted a settlement proposal offering 75 per cent of the running ledger book balance. However, this was rejected by the consortium of lenders.
Meanwhile, NCLAT has been periodically extending its interim order staying the formation of CoC, as Arora has pleaded that 80 per cent of the project is complete and investors have offered to infuse funds for its construction. The consortium of banks also rejected a revised One-Time Settlement (OTS) proposal submitted by Arora with Parmesh Construction Company as Co-Developer. Following this, NCLAT moved ahead with the insolvency proceedings.
The appellate tribunal declined Ram Kishore Arora's plea to challenge the decision of the Financial Creditor not accepting the OTS proposal. The tribunal stated, 'We are of the view that reasons which persuaded the Banks not to accept the OTS proposal cannot be gone into in these proceedings. Present is not a case, where an application filed under 12A for withdrawal of CIRP has not been approved by CoC with 90 per cent vote share, which decision has been held to be subject to judicial review on limited grounds that the decision of CoC is arbitrary.'
Bank of Maharashtra submitted that the dues of all Consortium Banks are above Rs 990 crore. The Banks in their Joint Lenders' Meeting held on June 13, 2025, decided not to accept the OTS. Arora claimed he was not informed about the rejection of the OTS proposal. However, the banks responded that the decision of the Consortium was communicated by Union Bank of India, the lead bank of the consortium, on July 15, 2025, and a copy of the letter has already been brought on record by them in their compilation submitted before NCLAT.
For the project, Supertech Realtors approached a consortium of lenders led by Union Bank of India seeking financial assistance of Rs 7,35.58 crore. Out of this, it had also requested a credit facility of Rs 150 crore, which was granted by Bank of Maharashtra. In December 2012, a term loan of Rs 150 crore was granted. The term loan was repayable in quarterly installments in the consolidated door-to-door tenor for 10 years and 4 months by March 2023. However, Supertech Realtors failed to maintain financial discipline and defaulted in properly maintaining the said accounts in addition to committing other breaches and violations of the credit limit, leading to the accumulation of huge outstanding.
Frequently Asked Questions
What is the Supernova project?
The Supernova project is a large-scale real estate development in Noida, India, comprising residential apartments, offices, retail space, and a luxury hotel. It is being developed by Supertech Realtors at a cost of Rs 2,326.14 crore and is planned to be the tallest building in Delhi-NCR at 300 metres.
Why did Bank of Maharashtra file a petition against Supertech Realtors?
Bank of Maharashtra filed a petition against Supertech Realtors claiming default on a significant loan. The bank alleged that Supertech failed to maintain financial discipline and defaulted on its loan repayments, leading to the initiation of insolvency proceedings.
What is the role of the National Company Law Appellate Tribunal (NCLAT) in this case?
NCLAT is the appellate body that reviews and upholds decisions made by the National Company Law Tribunal (NCLT). In this case, NCLAT upheld the NCLT's order to initiate the Corporate Insolvency Resolution Process (CIRP) against Supertech Realtors.
What is the Corporate Insolvency Resolution Process (CIRP)?
The Corporate Insolvency Resolution Process (CIRP) is a legal framework under the Insolvency and Bankruptcy Code (IBC) that aims to resolve insolvency issues of corporate entities. It involves appointing a resolution professional to manage the company's affairs and formulating a resolution plan to either revive the company or liquidate its assets.
What was the outcome of the revised One-Time Settlement (OTS) proposal submitted by Ram Kishore Arora?
The revised One-Time Settlement (OTS) proposal submitted by Ram Kishore Arora, the promoter of Supertech Realtors, was rejected by the Consortium of Banks. This rejection led to the continuation of the insolvency proceedings against Supertech Realtors.
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