Supertech Insolvency Case: Lender asks to deposit Rs 75 cr as upfront payment for considering one-time settlement
Realty firm Supertech's financial creditor Union Bank of India has asked the insolvency-bound company to deposit Rs 75 crore as upfront cash for considering one-time settlement (OTS) of dues. During the proceedings of the insolvency appellate tribunal NCLAT, counsel representing Supertech informed that the realty firm had several rounds of discussions with Union Bank of India.The realty firm had offered to make an upfront payment of Rs 10 crore with 10 crore on acceptance of OTS, however, the public sector lender asked to deposit Rs 75 crore as a condition to consider for settlement.
"It is submitted that the Appellant (Supertech) has offered to make upfront payment of Rs 10 crore with 10 crore on acceptance of OTS and Rs 55 crore for exclusive security however the Bank has asked to deposit Rs 75 crore as upfront to consider the OTS," the NCLAT recorded in its order dated May 17.
Union Bank of India's counsel submitted that as per policy of the Bank, it is fully entitled to ask for upfront 15-20 per cent of the dues.
The National Company Law Appellate Tribunal (NCLAT) has asked the public sector lender to file a copy of the said policy.
"Learned Counsel for the Bank may file the copy of the Policy along with the Judgment of the Hon'ble Supreme Court on which reliance is placed in support of his submission before the date fixed," said a two member NCLAT bench headed by Chairperson Justice Ashok Bhushan.
Meanwhile, home-buyers of Supertech also filed an intervention in the matter through their counsel Piyush Singh over refund in Twin Tower case.
"We make it clear that in this Appeal there is no issue regarding the Twin Tower of Supretech," said NCLAT.
NCLAT had directed to list the appeal on May 23 and said its interim order staying formation of Committee of Creditors (CoC) would continue till then.
However, it also clarified that the interim resolution professional is free to take other steps.
"As prayed, list this Appeal on May 23, 2022. Interim order to continue till then. We have already stayed the Constitution of CoC however there is no stay of the other steps to be taken by the IRP," it said.
NCLAT's direction came, while hearing a petition filed by Ram Kishor Arora, a director of the suspended board of Supertech Ltd, against the order passed by the National Company Law Tribunal on March 25.
On March 25, the Delhi bench of NCLT initiated insolvency proceedings against Supertech Ltd over a petition filed by the Union Bank of India for non-payment of dues of around Rs 432 crore.
NCLT had also appointed Hitesh Goyal as the Interim Resolution Professional (IRP) superseding the board of Supertech Ltd.
However, NCLAT had stayed the formation of the committee of creditors under the insolvency proceedings after the realty firm requested for time to enable it to approach the bank for negotiations.
The default pertains to the loan given by the Union Bank of India to Eco Village II project at Greater Noida (West) in Uttar Pradesh, which was being developed at a cost of Rs 1,106.45 crore.
The formation of CoC is an important step for the Corporate Insolvency Resolution Process (CIRP) under IBC (Insolvency & Bankruptcy Code).
Once NCLT initiates CIRP against a debt-ridden firm, it appoints an Interim Resolution Professional (IRP) after suspending the board of the firm.
Article 18 of IBC mandates that it is the duty of the IRP to constitute the committee based on all the claims received against the corporate debtor and the determination of the financial position of the corporate debtor.
This story originally appeared on: Muscle & Fitness - Author:Tax Cognition
