Supreme Court Directs Supertech's IRP To Deposit Rs 1 Crore With Registry For Homebuyers' Relief

With a view to ensure that homebuyers get some relief, the Supreme Court on Friday asked the Interim Resolution Professional (IRP) of Supertech Ltd. to deposit an amount of Rs One Crore with the Supreme Court Registry before September 30, 2022. A Bench of Justices DY Chandrachud, JB Pardiwala and Surya Kant also directed the Amicus curiae Gaurav Agarwal and the IRP to jointly work out the outstanding dues of the homebuyers and submit the details before the next date of hearing so that directions on disbursement of the said fund could be issued. In this regard, the order reads, "In the meantime, in order to ensure that the homebuyers who are covered by the judgement of this court get some refund of their outstanding dues, we direct the IRP to deposit an amount of 1 crore with the registry of this court on or before 30th September, 2022. The Amicus and the IRP shall jointly work out the outstanding dues of the homebuyers presently before the court and submit the details before on the next date of listing so that directions can be issued for the disbursement of the fund deposited before the court. This court will also consider further directions for laying down time schedule." The Bench was considering a contempt petition preferred by the flat buyers of Supertech alleging non-compliance with regard to the direction to pay refund to the flatbuyers as per the main judgement dated August 31, 2021. In that judgement, the court had ordered the demolition of the Company's twin towers for violation of building rules. When the matter was taken up for hearing today, Amicus Agarwal told the Court that the Corporate Insolvency Resolution process under the Insolvency and Bankruptcy Code, 2016 is now confined to the project which is described as Eco Village. "Supertech is in under hybrid CIRP. Eco Village Project is under insolvency proceedings", Amicus Agarwal said. He said that the IRP could deposit an amount of Rs 1 crore which could be paid to be the homebuyers on a pro-rata basis. Further, the Court was told that the National Company Law Appellate Tribunal, while placing the IRP in in charge of the company directed that 70% of the revenue generation should be utilised for the purpose of construction and 30% to be utilised for meeting administrative expenses. Amicus Agarwal also informed the Court that he would have a joint meeting with the IRP so that certain details such as extent of net revenue inflow between June and Sept 2022, monies required for completing existing projects, assets from inventory which can be sold and expenses required for running companies could be available. "In October vacations, I want to sit with the IRP and figure out what are the pending applications. Net flow of supertech, what are the assets which can be sold and expenses of running the money", the Amicus told the Bench "We can't say pay in 30 days. Because both interests have to be maintained", the Bench remarked. Post which, the Court could lay down a time schedule for repayment of the dues of the homebuyers as per the main judgement of the Supreme Court dated August 31, 2021, Aggarwal said. "Hopefully, by then, we will have a clearer clarity", the counsel appearing for the homebuyers said, while requesting the Bench to mention that his clients would be paid in full though in instalments. "Your lordships, please mention that they will be paid in full and but instalments", he argued. "Most certainly", the court replied. The matter will be next listed for hearing after the week-long break in October, 2022. During the last hearing, the Supreme Court had directed the IRP of Supertech to segregate the claims of unpaid homebuyers from other creditors. The erstwhile management of Supertech had 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 Judgement.The Supreme Court has directed Noida authorities to complete the demolition of the twin-towers by August 28. Case Title: Chandrani Banerjee V. R.K. Arora And Ors.| CONMT.PET.(C) No. 151/2022 in C.A. No. 5041/2021 and Connected Petitions

Supreme Court Directs Supertech's IRP To Deposit Rs 1 Crore With Registry For Homebuyers' Relief

Rintu Mariam Biju

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