Supertech Emerald Building in Sector 93-A, Noida. (Express photo by Gajendra Yadav) A New Delhi bench of the National Company Law Tribunal (NCLT) on Friday accepted a plea moved by Union Bank of India to initiate insolvency against debt-laden builder Supertech.
Earlier on December 17, Union Bank of India had rejected a one-time debt settlement proposal submitted by Supertech. In its order pronounced on Friday, the NCLT said that since counsel for the company had admitted the debt and default on debt, it must be admitted into insolvency.
A detailed copy of the order is awaited.
The New Delhi-based builder had earlier this year in January faced the ire of the Supreme Court for not complying with its order on demolition of the 40-storey twin towers in Noida’s Sector 93A. The top court had then warned that the directors of the company would be sent to jail for “playing truant”.
The NCLT’s Friday order is likely to impact more than 25,000 homebuyers who are awaiting possession of their homes from the builder. Once a company is admitted into insolvency, a blanket moratorium is imposed, which prohibits any routine and new expenditure by the firm, other than those allowed by the interim resolution professional.
Apart from this, all the pending cases against the company are also put on hold till a resolution is achieved.
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
