Supreme Court Restrains Supertech Realtors from Creating Third Party Rights in 'Supernova' Project

The Supreme Court has issued an order restraining Supertech Realtors and its suspended director from creating any third party rights in the ambitious 'Supernova' project in Noida. This decision comes amidst ongoing insolvency proceedings against Supertech Ltd, the parent company of Supertech Realtors.

Supertech Realtors is a wholly owned subsidiary of Supertech Ltd, a real estate major currently facing insolvency proceedings. The 'Supernova' project is a mixed-use real estate development in Sector 94 of Noida, comprising residential, commercial, office space, studio apartments, service apartments, and shopping centers. The building is expected to have 80 floors and stand 300 meters tall, making it the tallest structure in the Delhi-NCR region.

A bench of Justices Surya Kant, Ujjal Bhuyan, and N Kotiswar Singh also impleaded the Noida Authority as a party in the matter. The bench directed that the suspended director, Ram Kishore Arora, and his associates are restrained from alienating or creating third party rights in the project. The court also ordered Supertech Realtors to cooperate with the interim resolution professional (IRP) appointed by the National Company Law Tribunal (NCLT).

Advocate Rajiv Jain pointed out that Supertech Realtors has not been cooperating with the IRP, leading the bench to direct the company to provide full assistance and records as required. The bench further instructed that the soft copy of the entire record be provided to the IRP and the amicus curiae.

Senior advocate K Parmeshwar, appearing for the Supernova Apartment Owners Association (SNAOA), argued that the Noida Authority should be made a party due to its role in the registry of properties and flats of homebuyers. The bench accepted this argument and allowed the interlocutory application of SNAOA.

Another group of homebuyers, represented by senior advocate Gaurav Bhatia, submitted that the Supernova project is 70% complete and should not be compared to other real estate projects where a court-monitored resolution process was adopted. Justice Surya Kant suggested forming a committee to bring in a co-developer to infuse funds into the project, emphasizing the need for a transparent and fair process.

The top court allowed other interlocutory applications and listed the matter for further hearing on October 8. The court also permitted Arora and Supertech Realtors to file their response to the report submitted by the amicus curiae.

In his report, Jain recommended a court-monitored hybrid resolution mechanism similar to those used in the Amrapali and Unitech Groups cases, headed by former apex court judge Navin Sinha. The report highlighted the need for a forensic audit of Supertech Realtors and its parent company, Supertech Ltd, by a reputable and experienced entity. Jain also suggested the appointment of a new board of directors and a Project Management Consultant, such as NBCC, for the completion of the project.

The 721-page report of the amicus noted that the opinions of homebuyers were divided over the model of resolution process to be adopted. The report emphasized the need to balance the rights of financial creditors with the overriding need to deliver homes to buyers, achieving 'complete justice' as repeatedly sought by the court in similar cases.

Arora has challenged the August 13 order of the National Company Law Appellate Tribunal (NCLAT), which cleared the way for insolvency proceedings against Supertech Realtors. The NCLAT upheld the previous order by the Delhi bench of the NCLT, which initiated the Corporate Insolvency Resolution Process over a petition filed by Bank of Maharashtra, claiming default.