The Nationwide Agency Regulation Appellate Tribunal (NCLAT) has dismissed the plea filed by debt-ridden realty company Supertech former promoter Ram Kishor Arora in opposition to personal insolvency proceedings initiated in opposition to him.
He had challenged an order by the Delhi bench of the Nationwide Agency Regulation Tribunal, which, in February 2025, directed to impress personal insolvency proceedings in opposition to Arora on the plea filed by IFCI and appointed an IRP.
A two-member bench of the appellate insolvency tribunal NCLAT acknowledged personal insolvency proceedings couldn’t be defended based on one different insolvency persevering with moving into opposition to Supertech beneath half 7 of the IBC. It’s on the lenders to proceed in opposition to every concurrently or individually.
Half 95 (1) of the Insolvency & Chapter Code permits the collectors to file insolvency proceedings in opposition to the private guarantors.
Arora’s counsel submitted the insolvency proceedings initiated in opposition to Supertech Ltd beneath Half 7 is at current sub-judice sooner than the Supreme Courtroom. On this matter, the apex courtroom docket had, on February 21, 2025, requested the promoters of Supertech and third occasions to submit a settlement plan, and the tactic is already pending sooner than the Supreme Courtroom.
Supertech promoters and totally different occasions are inside the strategy of submitting a plan for improvement and settlement.
Rejecting this argument, the NCLAT acknowledged: “Be that as it’d, we’re of the view that the private insolvency proceedings often are usually not defended on proceedings beneath Half 7, which can be proceedings in opposition to the Firm Debtor (Supertech), the obligation of the private guarantor and the Firm Debtor to the lenders are co-extensive and it’s open for the lenders to proceed in opposition to every concurrently or individually”.
Arora’s counsel further submitted that the proposal has moreover been despatched to IFCI Monetary establishment with an OTS (one-time settlement) Proposal, which is pending consideration.
“We after listening to the Counsel for the Appellant (Supertech), are of the view in so far as the admission of the equipment beneath Half 95, that may not be faulted on the underside of pendency of proceedings beneath Half 7 in opposition to CD,” acknowledged a NCLAT bench comprising Chairperson Justice Ashok Bhushan and Barun Mitra.
Nonetheless, the NCLAT acknowledged will most likely be open for Arora to ship sooner than the Determination Expert settlement with IFCI Monetary establishment if any, or any proceedings or any settlement, entered into the proceedings beneath Half 7, which can be pending consideration sooner than the Supreme Courtroom.
The appellate tribunal further acknowledged: “It goes with out saying that every one provides which can be launched by the appellant be duly considered by the RP for persevering with further inside the personal insolvency proceedings”.
Arora was the private guarantor of the loans taken by Supertech from IFCI.
Earlier, on December 12, 2024, the NCLAT had appointed state-owned NBCC as a mission administration advisor to complete debt-ridden realty company Supertech Ltd’s 16 precise property initiatives at a value of just about Rs 9,500 crore.
This was challenged sooner than the Supreme Courtroom, which on February 21, 2025, stayed it and directed all stakeholders, along with firm guarantors, Supertech promoter RK Arora and the Yamuna Expressway Industrial Progress Authority (Yeida), to submit totally different proposals.
Insolvency proceedings have been initiated in opposition to Supertech on March 25, 2022.
This was immediately challenged by Arora sooner than the appellate tribunal NCLAT, which on June 10, 2022, modified the order and directed the Committee of Collectors (CoC) to be constituted with regard to Enterprise Eco Village-II solely. For various initiatives, the appellate tribunal directed to be saved as ongoing initiatives. The event of all totally different initiatives was to proceed with the final supervision of IRP.
The NCLAT order was challenged by the lenders and Indiabulls sooner than the Supreme Courtroom.
The apex courtroom docket allowed the order handed by the NCLAT on June 10, 2022, to perform. Regarding Eco Village-II, the Supreme Courtroom acknowledged the tactic previous voting on the Determination Plan will await a further order.
Earlier this yr, on Would possibly 31, 2024, the NCLAT directed for a project-wise resolution of Supertech and steps have been taken by the IRP. On July 15, 2024, NBCC made an announcement displaying their curiosity inside the initiatives of Supertech.
