Tribunal directs Apex Court Committee to file project-wise tentative completion dates and financial disclosures, emphasizing expeditious construction commencement by NBCC from January 16, 2027
In a significant judgment delivered on October 1, 2026, the National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, in the case of Ram Kishor Arora v. Union Bank of India and Anr., addressed the ongoing insolvency and real estate project completion issues concerning 16 stalled Supertech projects managed by NBCC (National Buildings Construction Corporation).
The Tribunal took on record the fresh timelines submitted by the Apex Court Committee following the earlier directions dated September 18, 2026. The timelines outlined key milestones including due diligence, statutory approvals, award of works, handover of project sites, and mobilization of funds to commence construction by January 16, 2027. The NCLAT emphasized the necessity to focus on the earliest possible completion of these projects and the handing over of possession to flat allottees and owners.
The Apex Court Committee's affidavit detailed the progress as follows: approval of NBCC Terms of Reference (TOR) is complete; due diligence and audit for construction commencement is targeted for completion by January 15, 2027, with provisions to continue parallel audits during construction. Statutory permits are to be secured before construction begins, and the process for awarding work contracts is expected to be finalized by December 31, 2026. Handover of project sites has already been completed, and interim financing mechanisms including institutional funding and self-financing by contractors are being actively pursued to ensure timely mobilization.
Importantly, the Tribunal reiterated the jurisdictional clarity regarding the change of Project Management Consultant (PMC). It held that the Apex Court Committee alone has the authority to consider appointing an alternative PMC or co-developer, but only after NBCC completes due diligence and detailed cash flow submissions project-wise. Such a change can occur if NBCC expresses inability to meet stipulated timelines or significant deviations from projected surplus are identified. As the stage for such consideration had not yet arisen, NCLAT declined to entertain any requests for PMC changes at this juncture.
The Tribunal further addressed issues raised by NBCC about deviations from approved maps and regulatory approvals in certain projects, such as Czar Suits, Hilltown, DDJAY II, and Eco Village I. It directed that the Interim Resolution Professional (IRP), once appointed by the NCLT, may move an application under Section 19(2) of the Insolvency and Bankruptcy Code (IBC), 2016 to seek necessary information from the erstwhile management for project completion.
Regarding finance, the Apex Court Committee is engaging public sector banks and financial institutions for interim funding, with the techno-economic viability report expected by mid-December 2026. Parallelly, a self-financing mechanism with deferred payments and nominal interest (6%-7%) has been introduced to encourage contractor participation without imposing heavy financial burdens on the corporate debtor.
While the Tribunal accepted the proposed timelines, it noted the absence of concrete completion dates for each project, which it deemed necessary given the varying stages of construction. Accordingly, it directed the Apex Court Committee to file a detailed report specifying tentative completion dates project-wise and disclose current finances before the next hearing scheduled for November 6, 2026.
The NCLAT's decision aligns with its earlier observations, including the Supreme Court's February 5, 2026 order, which prohibited any interim injunctions that might stall project commencement by NBCC, ensuring uninterrupted progress for the benefit of all stakeholders.
This judgment marks a crucial step toward resolving protracted delays in Supertech's real estate insolvency cases, focusing on practical, time-bound measures for project completion and safeguarding the interests of flat allottees.
Bottom Line:
Insolvency and real estate project completion - NCLAT took on record fresh timelines submitted by Apex Court Committee/NBCC for commencement of construction of 16 Supertech projects, declined to interfere at present stage, held that change of PMC can be considered only by Apex Court Committee after completion of due diligence and detailed cash flow submissions if NBCC expresses inability to complete project within timelines or there are significant deviations from projected surplus, and directed filing of project-wise tentative completion dates and disclosure of available finances.
Statutory provision(s):
Insolvency and Bankruptcy Code, 2016 Section 19(2)
