NCLAT Case Won

Corporate Insolvency Resolution Process (CIRP) & Assumption of Society Management by Capetown AOA

On the appeal of Union Bank of India, the Hon’ble National Company Law Tribunal (NCLT) initiated the Corporate Insolvency Resolution Process (CIRP) against Supertech Ltd. through an order dated 25.03.2022, appointing Mr. Hitesh Goyal as the Interim Resolution Professional (IRP). The IRP, through an advertisement dated 29.03.2022, invited claims from all stakeholders including lenders, landowners, contractors, and homebuyers.

The Capetown Association of Apartment Owners (AOA) immediately engaged a CIRP expert and conducted resident meetings to guide homeowners in filing their claims.

Supertech Ltd. subsequently challenged the CIRP before the Hon’ble National Company Law Appellate Tribunal (NCLAT). Vide order dated 10.06.2022, the NCLAT restricted the formation of the Committee of Creditors (CoC) to the Eco-Village 2 project only, while directing that all other projects—including Capetown—would continue under the overall supervision of the IRP with assistance from the suspended directors of Supertech Ltd.

The IRP submitted a status report on 04.07.2023 for all Supertech projects, including Capetown. Upon review, Capetown AOA identified serious discrepancies, particularly regarding:

• Non-execution of pending flat registries

• Incomplete construction and common amenities, including water supply, power infrastructure, sewage treatment plant, firefighting systems, solid waste plant, parking, etc.

• Non-refund of Interest-Free Maintenance Security (IFMS)

• Excess electricity charges already disallowed by eCGRF order dated 08.03.2022

To safeguard residents’ interests, the AOA unanimously resolved to move the NCLAT and accordingly filed IA No. 4306/2023 on 31.08.2023. In response, and pursuant to NCLAT’s order dated 18.09.2023, the IRP submitted an affidavit acknowledging these deficiencies and confirming the necessity of completing the amenities to ensure safe and habitable conditions for Capetown residents. In Feb/March 2024, the IRP submitted a revised project-wise resolution plan, which remains under consideration.

Assumption of Common Area Maintenance & Asset Control

Pursuant to multiple legal directions—including those of the Hon’ble High Court of Allahabad, CEO Noida Authority, Additional Chief Judicial Magistrate, and the Hon’ble NCLAT—and following a unanimous resolution in the Special General Body Meeting held on 06.10.2024, the Capetown AOA formally took over the common area assets and maintenance of the society from M/s YG Estate Facility Management Pvt. Ltd. on 13.10.2024, under police supervision.

This handover was necessitated by persistent non-compliance of the promoter, Supertech Ltd., and its agency. To ensure service continuity, the AOA retained most of the existing staff and, after due diligence and vendor evaluation, appointed M/s Gravity Facility Management Solutions Pvt. Ltd. as the new maintenance agency w.e.f. 13.10.2024. Efforts are ongoing to secure all relevant documents and inventories from the erstwhile agency and the IRP.

On 17.02.2025, YG Estates filed an application before the NCLAT seeking to reverse this handover. However, vide order dated 04.03.2025, the Principal Bench of NCLAT dismissed YG Estates’ plea, affirming that the Capetown AOA retains full and exclusive operational control over maintenance and management of the society.