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New Delhi: Noting that it would create “extreme hardship” and “uncertainty” for home buyers if all the projects of the real estate giant supertech is brought within the insolvency proceedings, the Supreme Court in its interim order on Thursday directed that only one of its projects – Ecovillage 2 Insolvency 2 Greater Noida West Action will be taken under the Insolvency and Bankruptcy Code (IBC).
Relief to thousands of homebuyers who booked flats in other projects supertechA bench of Justices Dinesh Maheshwari and Sanjay Kumar rejected the plea of financial creditors of Supertech to constitute a committee of creditors for the entire group and not just one project as ordered by the National Company Law Appellate Tribunal Is.NCLAT,
“If at the present stage, on the submission of the appellants, the CoC is ordered to be constituted for the corporate debtor as a whole in supersession of the directions of the Appellate Tribunal, it is likely to affect those ongoing projects and thus causes immense hardship to the home buyers, throwing every project in a state of uncertainty. On the other hand, as indicated before us, other projects are being continued by IRPs and funds are being sought with the active assistance of the former. Efforts are being made to flow into the management but without creating any additional authority in the pre-management. In our view, the passing of any interim order constituting the CoC in respect of the corporate debtor as a whole is likely to cause more inconvenience and may cause irreparable damage to the company. Home buyers,” the bench said. The apex court noted that the course adopted by the tribunal that except the Eco Village-2 project, all other projects of the corporate debtor were declared as ongoing projects and other All projects have to be kept as built. The erstwhile management, along with its employees and workmen, are to be continued under the supervision of the IRP. It has been said that the system should not be dissolved for the time being.
The creditors — Union Bank of India and Indiabulls Asset and Reconstruction Company Limited — argued that the Appellate Tribunal did not have the power under the IBC to allow project-wise CIRP and without accepting the resolution plan submitted by the promoter. didn’t have the power. Giving opportunity to CoC. It was also argued that there was no concept of project-wise resolution under the IBC.
It said that the order of the Appellate Tribunal shall continue to operate subject to the final orders passed by the court and also directed that no further process beyond voting on the resolution plan in respect of the Eco Village-2 project shall be carried out without its specific orders. should be done. ,
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