The National Company Law Appellate Tribunal (NCLAT) has expressed concern regarding the failure of the major construction conglomerate NBCC to adhere to the stipulated timelines for resuming work on the frozen residential projects of Supertech Ltd.
Furthermore, the three-member bench drew the attention of the authorities to the delay in appointing an Interim Resolution Professional (IRP) for this developer firm, which is currently undergoing Corporate Insolvency Resolution Process (CIRP).
NCLAT directed the NCLT and the Insolvency and Bankruptcy Board of India (IBBI) to propose candidates within one week. The Tribunal stated on Friday: 'We have been informed that the application for the appointment of IRP is under consideration by NCLT, and IBBI is instructed to propose names. The process must be completed within one week from today.'
The Tribunal noted that upon the appointment of the IRP, he would also be required to head the High Court Committee overseeing Supertech's halted projects, as well as chair the Projects Committee.
NBCC's Failure to Meet Deadlines
In its five-page interim order, NCLAT also highlighted the breach of deadlines by the state construction giant NBCC in fulfilling the requirements outlined in its previous order dated May 6, 2026, concerning the resumption of Supertech's projects.
The Tribunal reminded that in the order dated June 6, 2026, specific timelines were set for NBCC to commence the project: completion of Condition-I was due by December 12, 2024, and Conditions-II, III, V, and VI no later than July 31, 2026. Additionally, NBCC was required to process the award of works under Condition-IV by July 31, 2026, complete the contract within one month, after which construction was to begin on October 1, 2026.
According to the Tribunal's observation, the status report submitted by the High Court Committee on September 10 indicated difficulties faced by NBCC in meeting these conditions but did not propose new deadlines for their compliance.
The Appellate Tribunal emphasized: 'We have also reviewed the Status Report dated September 10, 2026, submitted by the High Court Committee, which notes the difficulties NBCC is facing in complying with Conditions II, III, IV, V, and VI,' adding that it 'does not specify the projected dates for the completion of the aforementioned Conditions mentioned in Paragraph 85(1) of the order dated May 6, 2026.'
Conditions II, III, IV, V, and VI correspond to the completion of project due diligence, obtaining necessary governmental approvals, awarding of works, transfer of project ownership to NBCC, and ensuring the availability of funds, respectively.
The advisor representing the High Court Committee informed the bench that the meeting scheduled for September 20, involving representatives of NBCC, should establish clear timelines for compliance and commencement of construction.
The Tribunal also took note of statements that certain documents requested by NBCC from Supertech's previously suspended management had not been provided, and ordered that a list of such documents be submitted to it and forwarded to the advisor of the suspended management.
NCLAT ordered the adjournment of the matter to September 25 for further hearing.
On December 12, 2024, NCLAT constituted the High Court Committee and directed the state entity NBCC to take over and complete 16 frozen Supertech residential projects. It also instructed the project committees to monitor this process, requiring separate accounts to be maintained.
Supertech is under pressure from the CIRP initiated by the Tribunal for Companies (NCLT) based on the application of its principal creditor, Union Bank of India, on March 20, 2021.