Supreme Court Upholds NCLAT Order Permitting NBCC To Complete Supertech’s Stalled Projects, Bringing Relief To Homebuyers

In a major relief to homebuyers, the Supreme Court has upheld the National Company Law Appellate Tribunal's December 2024 order entrusting 16 stalled housing projects of debt-ridden Supertech Ltd to state-owned National Buildings Construction Corporation Limited (NBCC India Ltd) for completion.

A bench led by CJI Surya Kant invoked its extraordinary powers under Article 142, deeming the decision fair under the Insolvency and Bankruptcy Code, prioritizing over 50,000 homebuyers waiting up to two decades for possession across Noida, Gurugram, and other sites. The court directed NBCC to finish work expeditiously per an expert committee's plan, retaining promised amenities like water and electricity. This resolves prior 2025 stays, offering relief to the buyers.

To prevent further delays, the court has also restrained all tribunals and High Courts from issuing orders that could obstruct or slow down construction activity undertaken by NBCC in this case. "With an aim to ensure that no impediment is caused to the completion of the stalled projects, we direct that no tribunals and high courts shall pass any interim directions that may lead to the stopping of the projects undertaken by the NBCC," the bench said.

Court noted that appellate tribunal’s approach was consistent with the Insolvency and Bankruptcy Code (IBC) and could not be faulted on grounds of fairness or legality.

Invoking its powers under Article 142 of the Constitution, the apex court has laid down safeguards prioritising buyers’ interests. It directed that claims of financial and operational creditors would be considered only after fully constructed and furnished homes are handed over.

NBCC had approached the appellate tribunal seeking permission to step in and complete Supertech’s projects amid ongoing insolvency proceedings initiated by Union Bank of India. 

In December last year, the Supreme Court had also invoked Article 142 of the Constitution to issue a series of steps to ensure the completion of the stalled Supernova real estate project in Noida, while its developer Supertech Realtors Pvt Ltd., is facing insolvency proceedings. A CJI Surya Kant led bench had also ordered that the resolution process shall be overseen by an empowered Court-appointed Committee (Committee) that will also discharge the functions of the Board of Directors.

Issuing notice on appeals challenging the NCLAT order, the SC had on February 21, 2025 stayed the order, saying that it will examine whether the tribunal “was right in awarding the work of construction etc to NBCC (India) Ltd without following the procedure prescribed under” IBC.

Additional Solicitor General of India Archana Pathak Dave and Advocate Gudipati Gayatri Kashyap appeared for NBCC before the Supreme Court.