NOIDA: A group of more than 250 contractors and vendors who provided materials and services to Supertech Ltd have approached the National Company Law Appellate Tribunal (NCLAT), demanding that dues exceeding Rs 200 crore be cleared at the earliest.
The contractors — who formed Shree Shyam Vendors Association in Dec last year — asserted that though they worked under interim resolution professional (RP) Hitesh Goel’s direction during the corporate insolvency resolution process (CIRP), their payments were not prioritised as required by the Insolvency and Bankruptcy Code (IBC).
On Thursday, the contractors’ application challenged both the IRP’s conduct and the NCLAT’s Dec 12, 2024, order, which appointed state-owned NBCC to complete 16 delayed Supertech housing projects.
The association argued that while issuing its final order, the NCLAT failed to acknowledge the priority of payments due to operational creditors — as mandated by the IBC. The payments included expenses for maintaining essential supplies and facilitating the completion of the project and handovers of flats.
The contractors also noted that during an earlier hearing in Sept last year, the NCLAT considered CIRP-related costs for only one project — Ecovillage 2 — and formed a committee of creditors. But no such decision was taken for other ongoing projects. Even in the Dec 12 order, the post-CIRP costs for the remaining projects were seemingly left out.
Following Supertech’s insolvency proceedings in March 2022, the IRP had assured vendors that dues incurred during CIRP would be treated as insolvency resolution process costs (IRPC) and settled “on priority”. This commitment, however, remained unfulfilled.
The NCLAT’s current fund allocation directive — which assigned 70% of project receivables for construction and land costs and 30% for banks and financial institutions — reportedly made no provision for operational creditors.
The association also criticised their exclusion from two court committees — the apex court committee and project-wise panels — which include financial institutions, homebuyers, land authorities, and NBCC representatives. This omission, they said, effectively denies operational creditors any voice in decisions affecting their claims.
The contractors sought a modified order ensuring CIRP costs were paid before other creditors received their funds. The NCLAT requested written submissions from the IRP’s counsel and scheduled the next hearing for Feb 10.
Apart from the contractors, around 300 Supertech employees filed a separate petition against the IRP. They claimed their salaries had not been paid since Sept last year, with officials citing various reasons. Many employees said they were facing difficulties in meeting their children’s educational expenses and clearing loan EMIs.
Supertech Ltd is one of many companies floated by Supertech group. The National Company Law Tribunal ordered the initiation of insolvency proceedings in March 2022. Following an appeal by Ram Kishor Arora — former Supertech promoter — the NCLAT in June 2022 allowed the formation of the committee of creditors for Ecovillage 2 while keeping other projects under the supervision of the IRP.
