NCLAT gives 2 wks for Supertech Township's IBC settlement proposal
This story was originally published at 22:01 IST on 27 September 2024
Register to read our real-time news.Informist, Friday, Sep 27, 2024
NEW DELHI – The National Company Law Appellate Tribunal has granted Ram Kishore Arora, the suspended director of Supertech Township Projects Ltd, two weeks to complete his settlement proposal and circulate it to banks and homebuyers in the insolvency case of the company. The appellate tribunal said it will consider on Oct 23 whether Arora's proposal deserves to be accepted or not after hearing the counsel for lenders and homebuyers.
On Jul 18, the Delhi bench of the National Company Law Tribunal had admitted a petition by Punjab & Sind Bank to start insolvency proceedings against Supertech Township for defaulting on dues amounting to 2.17 bln rupees. However, the appellate tribunal on Jul 29 had directed that no further steps should be taken except collation of claims which have already been invited.
Supertech Township Projects had proposed to develop a group housing project, Golf Country, in Greater Noida, Uttar Pradesh, at an estimated cost of 15 bln rupees. The project was to be financed through a term loan of 3.40 bln rupees, promoters' contribution of 4.53 bln rupees, and advance bookings from customers amounting to 7.07 bln rupees.
Thereafter, Punjab & Sind Bank sanctioned a term loan of 1.40 bln rupees for financing part of the project. The lenders--Punjab & Sind Bank, Oriental Bank of Commerce, and Bank of Maharashtra--entered into an inter-se agreement to provide the credit, and authorised Punjab & Sind Bank to act on their behalf.
Punjab & Sind Bank said that contrary to the terms and conditions of the loan agreement, Supertech Township failed to maintain financial discipline or its accounts, in addition to other violations. Consequently, the outstanding payable by the company kept rising.
Challenging the order of appellate tribunal, Arora had said that he was taking steps to settle the entire dispute with the bank and within 7 days from Jul 29, an appropriate proposal shall be submitted to them. Thereafter, on Thursday, Arora said that a proposal has been submitted for 100% payments of dues of the bank. He said he has an investor who is ready to clear the debt of the bank as well as carry on the construction of the project which was held up for the past several years.
Today, the shares of Punjab & Sind Bank closed 0.2% higher at 55.95 rupees on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Deepshikha Bhardwaj
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
