‘Supertech home buyers’ interests will be shielded’

The Supreme Court on Monday said it will protect the interests of homebuyers in Supertech’s to-be-razed twin towers situated at Noida’s Emerald Court project from the ongoing insolvency proceedings against the company, and directed the interim resolution professional to separately deal with the refund claims of the buyers and the creditors.

Supertech’s erstwhile management told the court that the demolition process will remain “untouched” by the current proceedings against the company as well as the razing of the twin towers in accordance with the Supreme Court’s August 31, 2021 order.

The order of the court came as a big relief to homebuyers, whose money was stuck when the National Company Law Tribunal (NCLT) on March 25, initiated insolvency proceedings against Supertech on a plea by Union Bank of India over unpaid loans to the tune of over ₹400 crore.

The NCLT appointed Hitesh Goel as interim resolution professional (IRP) to manage the affairs of the company even as Supertech claimed to be in the process of filing an appeal before the National Company Law Appellate Tribunal (NCLAT).

Till March 25, Supertech had settled refund claims over 652 of the total 711 sold units in the twin towers, leaving just 59 homebuyers having an outstanding principal amount of ₹14.96 crore.

A bench of justices Dhananjaya Y Chandrachud and Surya Kant directed the 59 homebuyers to submit their claims by April 15 to the IRP, who will then calculate the amount payable with interest and submit a report to the court by April 30.

“The IRP shall indicate in the report the amount available with the company that can reasonably be made available in the near future from the running operations of the company that can be sufficient to meet the claims of the homebuyers as per the judgment of August 31,2021,” the bench said, and posted the matter for hearing on May 6.

The order of the court was passed on suggestions made by advocate Gaurav Agrawal, assisting the court as amicus curiae (friend of the court) who had consulted with the IRP on the arrangements to be worked out as he received numerous calls and representations by worried homebuyers of the twin towers.

Advocate Rishabh Parikh, appearing for the IRP, informed the court that the portal created for receiving claims from financial creditors had a separate tab for the twin tower homebuyers.

The erstwhile management represented by senior advocate S Ganesh told the court that the company was anxious to settle all refund claims but could not do so as the necessary paperwork with regard to no objection certificate from banks was not available before the order passed by NCLT.

“I do not want the corporate insolvency resolution proceedings to stand in the way of refund to homebuyers,” Ganesh said. On the ongoing demolition of the twin towers, he said, “The demolition remains untouched by the present proceedings.”

For the homebuyers, advocate Abraham Mathews told the court that the insolvency proceedings could be a ploy by the company to defer refund commitments.

By May, the demolition of the twin towers is expected to take place as Supertech has already engaged the services of Edifice Engineering.

The order to demolish the twin towers was first issued by the Allahabad high court in April 2014. On an appeal by Supertech, the SC upheld the HC verdict and ordered compensation. While most of the homebuyers who booked flats initially either took refund or shifted to other Supertech projects, only 252 homebuyers had stayed on with the project.