'Will Protect Homebuyers' Interest' : Supreme Court Asks Supertech IRP To Segregate Homebuyers' Claims From Other Creditors

On being told that the Supertech Ltd - whose twin towers in Noida were ordered to be demolished for violation of building rules- was undergoing insolvency, the Supreme Court on Monday directed the Interim Resolution Professional(IRP) to segregate the claims of unpaid homebuyers from other creditors.The erstwhile management of Supertech Limited on Monday told the Supreme Court that only 59 homebuyers out of 711 have to be refunded in terms of the Top Court order dated August 31, 2021 by which the demolition of the twin towers was ordered. The submission was made before the bench of Justices DY Chandrachud and Surya Kant in the contempt petition preferred by the flat buyers alleging non-compliance of the directions to pay refund to the flatbuyers.Appearing for the developer, Senior Advocate S Ganesh informed the court about the commencement of insolvency resolution process against Supertech. He also referred to the March 25, 2022 order passed by the NCLT to assert that out of 711 claims, the developer had settled 652 claims and only 59 were remaining. He also requested the bench to segregate the claims of the homebuyers from other creditors."I don't want CIRP proceedings to stand in the way. This is an appropriate case to exercise powers under Art 142 as all these claims emanate from the judgment dated August 31, 2021 and its a direct consequence. Only quantification has been delayed. Some of them, despite repeated contacts, have not gotten back to us. The IRP be directed to gather the particulars of these 59 flat buyers and file a status report first and their claims should be kept separately. They need not join the rank of other creditors as the amount demanded by them is miniscule as compared to 100's of crores claimed by the banks," Senior Counsel submitted.Referring to para 5 of the note, Amicus Curiae Gaurav Aggarwal submitted that he had discussed the issue of segregating claims of home buyers from the creditors with IRP. He further added that IRP could try to figure out the same by considering the claims of the homebuyers and the availability of funds.Advocate Abraham Mathews, appearing for the homebuyers, requested the bench to keep the contempt petition pending to monitor the subsequent developments, to which the bench agreed.It may be noted that the Supreme Court on February 4, 2022 had directed that payment of the amounts of refund as computed by the Amicus Curiae shall be made to the home buyers on or before February 28."Where home loans are outstanding, the developer shall clear the home loans on or before March 31 and furnish NOCs from the concerned financial institutions to the home buyers no later than April 10; and in respect of those home buyers who have entered into settlement with the developer, the settlement shall govern the rights and obligations of the respective parties," the bench had said in its order.The bench of Justices D. Y. Chandrachud and Surya Kant had earlier noted that 38 home buyers are before the court in several impleadment applications, and that the home buyers are seeking refund in terms of the final judgment and order of this court dated 31 August 2021 (by which the demolition was ordered). On Monday (April 4), the bench, to resolve the outstanding claim of homebuyers, issued the following directions: Homebuyers of the Twin Towers which are governed by the order of this court dated August 31, 2021 shall file their claims with the IRP by April 15, 2022 with copy to Mr Gurav Aggarwal, Amicus curiaeCounsel of IRP also states that in the portal which has been created for filing of claims by the creditors, there is a separate tab provided for the claims of Twin Towers. All claims received upto 15th April 2022 by the IRP shall be collated together with the interest due and report be furnished before this court by April 30, 2022IRP shall indicate in this report whether the amount available with Supertech can be reasonably made available in future running operations would be sufficient to meet the outstanding claim of the remaining homebuyersRemaining home buyers shall at the present stage be segregated from other creditors. Pursuant to the issuance of directions, the bench further remarked, "We will protect the interest of the homebuyers." Case Title: Chandrani Banerjee V. R.K. Arora And Ors.| CONMT.PET.(C) No. 151/2022 in C.A. No. 5041/2021 and Connected PetitionsClick Here To Read/Download Order

'Will Protect Homebuyers' Interest' : Supreme Court Asks Supertech IRP To Segregate Homebuyers' Claims From Other Creditors

Shruti Kakkar

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