Supreme Court Upholds NCLAT Order Directing NBCC To Complete Stalled Supertech Housing Projects
The Supreme Court on Thursday upheld the order of the National Company Law Appellate Tribunal (NCLAT) directing State-owned NBCC to expeditiously complete 16 stalled housing projects of debt-ridden real estate developer Supertech Limited.
A Bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi affirmed the NCLAT's December 12, 2024 order, which had brought NBCC on record for completion of the projects in the interest of homebuyers.
“We find that the order passed by the NCLAT on December 12, 2024, in bringing the NBCC on record for the completion of the pending housing projects is neither unfair nor contrary to the provisions of the Insolvency and Bankruptcy Code (IBC),” the Court noted in its order. In February 2025, the Court had stayed the NCLAT order.
The Court noted that Supertech had booked around 51,000 residential units for delivery during the 2010–12 period, and that thousands of buyers had been left in the lurch due to prolonged delays and financial distress of the company.
To protect homebuyers' interests, the Court passed various directions invoking Article 142 of the Constitution. The Court made it clear that the dues of financial and operational creditors of Supertech could be addressed only after fully constructed and furnished homes were handed over to the buyers. The Court further clarified that the completed houses must include all promised facilities, including water and electricity supply, sewage connections, as well as roads and parks in the surrounding areas.
The Court directed NBCC to undertake and complete the projects expeditiously in accordance with the roadmap envisaged by an expert committee constituted by the NCLAT, and also directed the committee to extend necessary assistance to NBCC in the execution of the projects.
The Court also restrained all tribunals and High Courts from passing any order that could stall or impede the construction work to be carried out by the National Buildings Construction Corporation Limited (NBCC).
Solicitor General Tushar Mehta appeared for the NBCC. Senior Advocates Shyam Divan, V Giri etc appeared for various parties.
What Was The NCLAT Order About?
NBCC had filed an application to undertake the Projects of M/s. Supertech Limited (“Corporate Debtor”), in the pending insolvency proceedings by Union Bank of India, against M/s. Supertech Limited, a real-estate Company engaged in the construction of various housing Projects in Noida, Greater Noida, and other cities of the country.
As per the December 12 order of NCLAT, the bench of Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) observed that NBCC cannot be exempted from complying with statutory requirements, including the RERA Act. The Tribunal referred to the judgment in Bikram Chatterji & Ors. v. Union of India, which laid down that public trust doctrine calls for the State and its functionaries to take affirmative action for effective management.
The Tribunal observed that Homebuyers who had made substantial payments for units in various projects are entitled to recover only the unpaid dues as per the Builder Buyers Agreement. It clarified that there shall be no additional cost imposed on the Homebuyers for completion, except the outstanding dues. The Tribunal also noted that the completion of projects must be funded by the unsold inventory, receivables from Homebuyers, and funding from NBCC.
The Tribunal further directed that:
(1) Homebuyers will not bear additional costs beyond their Builder Buyer Agreements;
(2) Quality construction will be prioritized, with third-party audits conducted by reputable institutions;
(3) Projects must be completed within 12 to 36 months.
Case : APEX HEIGHTS PVT. LTD. Vs RAM KISHOR ARORA C.A. No. 2626/2025 and connected cases.