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Supertech's Twin Towers: Homebuyers' interest will be protected, says SC

Supertech's Twin Towers: Homebuyers' interest will be protected, says SC

Supertech's Twin Towers: Homebuyers' interest will be protected, says SC
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By PTI Apr 4, 2022 7:52:57 PM IST (Published)

The Supreme Court on Monday said it will protect the interest of home buyers of 40 storey twin-towers of Emerald Court project of real estate developer Supertech Ltd, which has been now declared bankrupt by NCLT and directed them to their claims for refund of payments by April 15.

The Supreme Court on Monday said it will protect the interest of home buyers of 40 storey twin-towers of Emerald Court project of real estate developer Supertech Ltd, which has been now declared bankrupt by NCLT and directed them to their claims for refund of payments by April 15.

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Realty firm Supertech Ltd informed the top court that it will be filing an appeal against the order of the National Company Law Tribunal (NCLT) declaring it bankrupt on a plea filed by the Union Bank of India for non-payment of around Rs 432 crore worth of dues.
A bench of Justices DY Chandrachud and Surya Kant noted the submissions of senior advocate S Ganesh appearing for ex-management of Supertech and amicus curiae Gaurav Agarwal that there was a total of 711 home buyers of the twin towers out of which the company had settled the claim of 652 home buyers.
It noted that 59 home buyers still need to be refunded and the outstanding amount would be around Rs 14.96 crore, as per the amicus curiae note.
The top court took on record a note filed by Agarwal which said that NCLT has passed an order on March 25, 2022, by which a corporate insolvency resolution process has been initiated against Supertech Ltd and IRP Hitesh Goel has been appointed.
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Agarwal in his note submitted that the bench may consider whether refund payments of the remaining home buyers of the twin towers as per the orders of the top court, should form part of the resolution process or whether the payments should be made by the company from the funds available or funds which would become available which would mean keeping it out of the resolution process.
He said that in case the payments are made part of the resolution process, then would it be a separate category in the resolution plan so that home buyers get the refund with interest from the successful resolution applicant.
Ganesh said the top court had fixed a deadline of March 31 for making total refunds but on March 25, the company was declared insolvent and claims of 59 home buyers could not be settled as there was a delay in the completion of proper documentation work.
The bench bringing an end to the uncertainty voiced by some home buyers assured them saying, "There is our order for a refund. We will protect the interest of those home buyers."
It ordered, "Homebuyers of the twin towers shall file their claim by April 15 with a copy to the amicus curiae." The bench noted the submission of counsel for Interim Resolution Professional (IRP) that a tab has been created in the portal for filing the claims by the home buyers of the twin towers.
It issued notice to IRP and directed that all the claims of home buyers who filed their claims till April 15 shall be collated along with the interest due, computed, and report be filed in the court by April 30.
The bench said that IRP shall also clarify in its report that the funds available in the bank account of the company or which can be reasonably made available in the near future for running operations of the company, would be sufficient to settle the claims. The amount of claims of home buyers shall be segregated from other claims of financial creditors, the bench added and posted the matter for further hearing on May 6.
At the outset, Ganesh said that they don't want IRP to come in the way as they are endeavouring to settle the claim of home buyers and the court should exercise powers under Article 142 so that there is no interference. The bench said that ex-management of Supertech should also file a status report concerning those 59 home buyers.
 
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