The National Company Law Appellate Tribunal (NCLAT) has upheld the initiation of insolvency proceedings against Supertech Realtors. Supertech is the developer of the Supernova project, which includes residential apartments, office spaces, retail outlets, and a luxury hotel.

The Insolvency and Bankruptcy Appellate Tribunal affirmed the Delhi bench of the National Company Law Tribunal’s (NCLT) June 12, 2024 order directing the commencement of the Corporate Insolvency Resolution Process (CIRP) on a petition filed by the Bank of Maharashtra alleging loan default.

A two-member NCLAT bench noted that the revised settlement proposal submitted by promoter Ram Kishore Arora was not accepted by the consortium of banks.

“We are of the view that the present is a case where the resolution of the Corporate Debtor (Supertech Realtors) has to be undertaken as per the I&B Code and CIRP Regulations, 2016, in accordance with law. We, thus, upheld the order of the Adjudicating Authority (NCLT) admitting the Section 7 application and dismissing the appeal,” said NCLAT.

The appellate tribunal also gave a go-ahead to the interim resolution professional appointed by NCLT to constitute the CoC (Committee of Creditors) and proceed with the CIRP in accordance with the law.

Supertech Realtors is a subsidiary of realty firm Supertech, which is also facing insolvency proceedings along with some other group companies. Supertech Realtors is developing the Supernova project at a cost of ₹2,326.14 crore on a land measuring 70,002 square metres at Sector 94, Noida.

As per the plans, the Supernova project will have 80 floors and will be the tallest building in Delhi-NCR at a height of 300 metres.

Earlier, the NCLAT had put the process of constitution of the lender body CoC on hold on July 3, 2024, over Arora’s plea. He had not raised any dispute.

Regarding the debt and default of Bank of Maharashtra, the realty firm — with assistance from investor M/s Kotak Advisors –submitted a settlement proposal offering 75 per cent of the running ledger book balance. However, this was rejected by the consortium of lenders.

Meanwhile, the NCLAT has been periodically extending its interim order staying the formation of CoC, as Arora has pleaded that 80 per cent of the project is complete and investors have offered to infuse funds for its construction.

Finally, the consortium of banks also rejected a revised OTS proposal submitted by Arora with Parmesh Construction Company as Co-Developer, after which NCLAT moved ahead.

The appellate tribunal also declined Ram Kishore Arora’s plea to challenge the decision of the Financial Creditor not accepting the OTS (one time settlement) proposal submitted by him.

“We are of the view that reasons which persuaded the Banks not to accept the OTS proposal cannot be gone into in these proceedings. Present is not a case, where an application filed under 12A for withdrawal of CIRP has not been approved by CoC with 90 per cent vote share, which decision has been held to be subject to judicial review on limited grounds that the decision of CoC is arbitrary,” said a 32-page-long NCLAT order.

The Bank of Maharashtra submitted that the dues of all Consortium Banks are above ₹990 crore, and the Banks in their Joint Lenders’ Meeting held on June 13, 2025, have deliberated on all aspects of the matter and decided not to accept the OTS.

Arora further claimed that he was not informed about the rejection of the OTS proposal. On this, banks replied that the decision of the Consortium was communicated by Union Bank of India, which is the lead bank of the consortium, on July 15, 2025, and a copy of the letter has already been brought on record by them in their compilation submitted before NCLAT.

For the project, Supertech Realtors approached a consortium of lenders led by Union Bank of India seeking financial assistance of ₹7,35.58 crore. Out of this, it had also requested a credit facility of ₹150 crore, which was granted by Bank of Maharashtra.

In December 2012, a term loan of ₹150 crore was granted. The term loan was repayable in quarterly installments in the consolidated door-to-door tenor for 10 years and 4 months by March 2023.

However, Supertech Realtors failed to maintain financial discipline and defaulted in properly maintaining the said accounts in addition to committing other breaches and violations of the credit limit, leading to the accumulation of huge outstanding.