SC upholds NCLAT order entrusting Supertech's 16 projects to NBCC, Pg4

Key Highlights:

• The Supreme Court upheld the NCLAT order from December 2024 entrusting NBCC with completing 16 unfinished Supertech projects.
• The court invoked Article 142 of the Constitution, prioritizing the interests of over 50,000 homebuyers who booked homes between 2010 and 2012.
• The SC directed tribunals and high courts to avoid orders that could stall project work, ensuring promised facilities like water and electricity are maintained.
• Creditors will have to accept a haircut deemed "just and equitable" by insolvency tribunals, with priority given to handing over flats to homebuyers.

Detailed Insights:

• The NCLAT order aims to address the large number of incomplete Supertech projects, some pending since 2010, causing hardship to homebuyers.
• NBCC is expected to expedite the completion of the projects based on the recommendations of an expert committee established by the NCLAT.
• Article 142 grants the Supreme Court special powers to ensure complete justice in any cause or matter pending before it.
• A haircut in IBC proceedings reflects the reduced recovery amount creditors receive when a company undergoing insolvency cannot fully repay its debts.
• The ruling underscores the judiciary's focus on protecting homebuyers' interests within the framework of the Insolvency and Bankruptcy Code.

Key Concepts Involved:

• NCLAT: The National Company Law Appellate Tribunal hears appeals against orders of the NCLT.
• NBCC: National Buildings Construction Corporation is a central government construction company.
• Article 142: Grants the Supreme Court special powers to ensure complete justice.
• Haircut: Reduction in the amount creditors recover during insolvency proceedings.