# In the mater of Indiabulls Asset Reconstruction Company Limited vs. Ram Kishore Arora & Ors.

> SC judgment dated 2023-05-11. Citation: TCN-2023-SC-00073. The case involves appeals against an order by the National Company Law Appellate Tribunal (NCLAT)…

- **Court:** SC
- **Order date:** 11 May 2023
- **Citation:** TCN-2023-SC-00073
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/in-the-mater-of-indiabulls-asset-reconstruction-company-limited-vs-ram-kishore-a-3c7927de

## Summary

### Background

The case involves appeals against an order by the National Company Law Appellate Tribunal (NCLAT) concerning the corporate insolvency resolution process (CIRP) of Supertech Ltd. The NCLAT's order directed a 'project-wise insolvency resolution process,' specifically for the 'Eco Village-II' project, restricting the committee of creditors (CoC) to this project alone. Union Bank of India and Indiabulls Asset Reconstruction Company Ltd., being financial creditors, filed appeals challenging this approach. Assets and Care Reconstruction Ltd. also challenged an order related to the interim resolution professional's meeting. The Supreme Court is addressing the question of interim relief/arrangement during the pendency of these appeals, considering the tenability of

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## Facts

Supertech Ltd., a real estate company, received credit facilities from Union Bank of India for its 'Eco Village-II Project'. Union Bank of India and Bank of Baroda extended further credit facilities. The corporate debtor defaulted on loan repayment, leading to the account being declared a Non-Performing Asset on 20.06.2018. Union Bank of India filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) on 20.03.2021, claiming Rs. 431,92,53,302. The NCLT admitted the Section 7 application on 25.03.2022 and initiated CIRP, appointing Mr. Hitesh Goel as the IRP. The promoter/suspended director filed an appeal before NCLAT. NCLAT passed an interim order on 12.04.2022, directing that CoC shall not be constituted until the next date. The NCLAT, in its

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## Issues and analysis

### Issue 1: Whether the Appellate Tribunal has the power …

**Ratio:** The court refers to the principles concerning the grant of interim relief, emphasizing

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**Reasoning:** The court considers the potential impact on ongoing projects and the interests of home

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**Interpretation:** The court interprets the IBC to determine whether it allows for project-wise

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**Application:** The court applies the principles of interim relief to the specific facts of the

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## Parties

- **Judges:** DINESH MAHE…; Sanjay…
- **Appellants:** INDIABULLS ASSET…
- **Respondents:** Supertech…; RAM KISHORE ARORA…

## Timeline

- **2018-06-20 — Account Decla…**: The corporate debtor's account was declared as a 'Non-Performing Asset' due to default on…
- **2021-03-20 — Section 7 Application…**: Union Bank of India filed an application under Section 7 of the Code, claiming a total…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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