Order Passed By NCLAT Is Neither Unfair Nor Contrary To IBC: Supreme Court Directs NBCC To Complete Supertech’s Stalled Projects

The Court also restrained all the tribunals and High Courts from passing any order that may lead to the stalling of the construction work to be completed by the National Buildings Construction Corporation (NBCC) Limited.

A bench of Chief Justice Surya Kant and Justice Joymalya Bagchi used its extra-ordinary power under Article 142 of the Constitution to uphold the December 12, 2024 order of the National Company Law Appellate Tribunal (NCLAT), asking the NBCC to take over the projects in the interest of the homebuyers.

The bench noted that real estate firm Supertech, according to many homebuyers, had booked around 51,000 homes for delivery during 2010-12.

The CJI made it clear that the interest and dues of the financial and operation creditors of the debt-ridden real estate firm can be taken care of only after the delivery of fully-furnished houses to the hassled homebuyers.

The bench also made it clear that the houses must contain all the assured facilities like water, electricity, sewage connections, besides roads and parks in the neighbourhood.

It said the financial and operational creditors of Supertech will have to take the hair cut as found just and equitable by the tribunals -- the NCLT and the NCLAT.

"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 bench ordered while taking recourse of Article 142.

Article 142 grants the Supreme Court plenary power to pass any decree or order necessary for doing "complete justice" in any case.

The bench directed the NBCC to undertake the projects and complete those expeditiously as envisaged by an expert committee set up by the NCLAT. It also directed the committee to provide support to the NBCC in the completion of the projects.

Disposing of the pleas, the bench also allowed the parties to approach the apex court in view of any development that may come in the way of the ongoing projects.

On February 21, 2025, the Apex Court had stayed an order appointing the NBCC as the project management consultant to complete the 16 housing projects of Supertech at a cost of nearly Rs 9,500 crore.