# In the matter of Ram Kishor Arora Suspended Director of M/s.
Supertech Ltd.
Vs.
Union Bank of India & Anr. Company Appeal (AT) (Insolvency) No. 406 of 2022

> NCLAT judgment dated 2022-06-10. Citation: TCN-2022-NCLAT-00425. This case involves an appeal against an order by the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 10 Jun 2022
- **Citation:** TCN-2022-NCLAT-00425
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ram-kishor-arora-suspended-director-of-ms-supertech-ltd-vs-union-bank-of-india-a-602e4b30

## Summary

### Background

This case involves an appeal against an order by the Adjudicating Authority (National Company Law Tribunal, New Delhi) admitting an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Union Bank of India for initiating the Corporate Insolvency Resolution Process (CIRP) against M/s. Supertech Limited-Corporate Debtor. Supertech is a real estate company engaged in construction projects in the National Capital Region (NCR). Union Bank of India had granted credit facilities of Rs. 150 Crores for the 'Eco Village II Project', and later, along with Bank of Baroda, extended further credit facilities. Due to defaults in repayment, the account was declared a Non-Performing Asset (NPA). The Union Bank of India filed an application claiming Rs.

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## Facts

Union Bank of India initiated CIRP against Supertech Limited due to loan defaults. The bank had extended credit facilities for the 'Eco Village II Project', and along with Bank of Baroda, extended further credit. Supertech defaulted, leading to the account being declared an NPA. The bank claimed Rs. 431,92,53,302/-. The Adjudicating Authority admitted the Section 7 application. Supertech has multiple ongoing real estate projects in the NCR. Homebuyers and IDBI Bank filed intervention applications. Supertech proposed a settlement, offering upfront payments, but the bank insisted on a higher amount. The IRP's status report detailed 20 projects of Supertech and the claims against them. The promoters expressed willingness to cooperate and arrange interim finance. The court

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## Issues and analysis

### Issue 1: Whether the CIRP initiated against Supertech Limited should encompass all its projects or be …

**Ratio:** The principle of 'Reverse CIRP' as applied to real estate projects, where the CIRP is

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**Reasoning:** The tribunal considered that Supertech has multiple projects and that restricting the

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**Interpretation:** The interpretation of the IBC allows for flexibility in applying CIRP to real

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**Application:** The tribunal applied the principle of 'Reverse CIRP' by limiting the CIRP to

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## Parties

- **Judges:** Ashok Bh…
- **Appellants:** Ram Kishor Arora…
- **Respondents:** Supertech…; Union Bank of…

## Timeline

- **2022-03-25 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal, New Delhi) passed an order…
- **2022-04-12 — Appeal Ente…**: The appeal filed by the suspended director of Supertech Limited was entertained by the…

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