
Punjab & Sind Bank, the lead lender for Supertech Township Projects, has rejected a settlement proposal, leading the National Company Law Appellate Tribunal (NCLAT) to take a final decision on the insolvency of the financially troubled real estate firm.
On Thursday, the counsel for Ram Kishore Arora, the suspended director of Supertech Township Projects, informed the NCLAT that the bank had rejected the proposal. The NCLAT order noted, “Counsel for the appellant (Arora) submits that they have received the communication from Punjab & Sind Bank that the proposal submitted by the appellant is not acceptable.”
The three-member bench of NCLAT, led by Chairperson Justice Ashok Bhushan, stated that it would now have to make a final decision, as the appeal has been pending for several months. The bench allowed a one-week extension for the appellant to take further steps and scheduled the next hearing for January 23, 2025.
Supertech Township Projects is currently working on the development of a Group Housing Project called Golf Country, located at Yamuna Expressway in Greater Noida, Uttar Pradesh.
The NCLAT also confirmed that its previous interim order would remain in effect. During the hearing, the homebuyers association of the project raised objections, stating that they did not agree with Arora’s settlement proposal. Another group of homebuyers voiced their opposition to the insolvency proceedings, expressing support for the continuation of the project.
Despite these submissions, the NCLAT emphasized the need to make a final decision on the matter, noting that the appeal has been pending for several months.
In July 2024, the NCLAT had stayed the insolvency proceedings against Supertech Township Projects after the company proposed a settlement with Punjab & Sind Bank. The Corporate Insolvency Resolution Process (CIRP) had been initiated by the Delhi bench of the National Company Law Tribunal (NCLT) following a ₹216.92 crore default by the real estate firm. The NCLT had appointed an interim resolution professional to manage the company’s affairs, a move that was challenged by Arora before the NCLAT.
The NCLAT’s decision to stay the insolvency proceedings allowed Supertech Township Projects to attempt a resolution with the bank, but with the recent rejection of the settlement proposal, the matter will now be decided in the upcoming hearings.