NEW DELHI: On Friday, the Supreme Court was recommended to consider a court-monitored hybrid resolution framework, similar to that used in the Amrapali and Unitech cases, led by former judge Navin Sinha to complete the Supertech Realtors’ ambitious ‘Supernova project’ in Noida.
Supertech Realtors is a fully owned subsidiary of Supertech Ltd, which is currently undergoing insolvency proceedings. The ‘Supernova’ project encompasses a mixed-use development featuring residential, commercial spaces, studio apartments, service apartments, and shopping malls in Sector 94 of Noida. The structure is expected to rise to 80 floors, making it the tallest in the Delhi-NCR at a height of 300 meters.
Advocate Rajiv Jain, assisting with the insolvency case, informed Justices Surya Kant and Joymalya Bagchi that stakeholders—including homebuyers, banks, and other financial institutions—support a court-monitored resolution process.
“The evolving jurisprudence from cases like Amrapali and Jaypee indicates that when standard insolvency procedures fail to protect homebuyers, the judiciary has demonstrated willingness to innovate,” the amicus report noted.
The report underscored that a court-monitored hybrid mechanism, reinforced by standards for developers and project managers, is both essential and feasible.
“This framework will balance the interests of financial creditors with the need to deliver homes to buyers, thus achieving the ‘complete justice’ that this court seeks in similar cases,” it stated.
The report proposed appointing a former Supreme Court judge or ex-chief justice of a high court to supervise the resolution process, limiting the frequency of court visits.
Jain put forward the names of former Supreme Court judge Navin Sinha and former Jammu and Kashmir High Court chief justice M M Kumar for this supervisory role.
The report recommended transferring control away from the promoter/appellant, who should be limited to technical cooperation. Key management personnel should also be excluded from the resolution mechanism.
A comprehensive forensic audit of Supertech Realtors’ finances and those of its parent company is also recommended to be conducted by a reputable organization.
The homebuyers’ opinions on the resolution model were split. The Supernova Apartment Owners Association, represented by advocate Govind Jee, opposed the engagement of co-developer Parmesh Construction Company Limited (PCCL) from the Bhutani Infra group, arguing that a suspended director shouldn’t choose a co-developer.
Jain, after discussions with stakeholders, asserted that a court-monitored resolution process, though unconventional, is legally viable under Article 142 of the Constitution. He emphasized that this approach should aim for a balanced outcome: allowing financial creditors access to surplus recoveries post-project completion while ensuring homebuyers receive their long-awaited units. It would mitigate the unfairness of liquidation, which could extinguish hope for buyers and leave only fragmented assets.
The bench scheduled a follow-up hearing for September 17.
The 721-page amicus report further advised the court to appoint a new board of directors for Supertech Realtors along with a Project Management Consultant, such as NBCC, for project completion. It also suggested that the Interim Resolution Professional appointed by the insolvency tribunal be replaced due to her inability to take control of the company.
