NEW DELHI: The National Company Law Appellate Tribunal has limited insolvency proceedings that have been initiated against
Supertech Ltd
, a group company of Supertech, to one project,
Ecovillage
2. In doing so, the tribunal applied 'reverse
CIRP
(corporate insolvency resolution process)', which allows Supertech to remain in charge of execution of the project. In a CIRP, the original promoter exits and an interim resolution professional is appointed to oversee a company that goes into insolvency.
In case of Supertech Ltd, an
IRP
has already been appointed by the National Company Law Tribunal (
NCLT
). The IRP will oversee the formation of the committee of creditors (COC), which will drive the insolvency resolution process for Ecovillage 2. There will be no CoC for any of the other 19 projects of Supertech Ltd, including Ecovillage 1 and 3, Upcountry, North Eyes, Hill Town, Green Village and Meerut Sports City. Supertech Ltd will continue work on these projects under the IRP's monitoring. The NCLAT ruling will be a relief for thousands of homebuyers who have been worried about the fate of their investments in these projects. The new process would help Supertech Ltd expedite construction work.