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Union Bank of India, the lender on whose application NCLT had initiated insolvency proceedings against Supertech Ltd, submitted before the appellate tribunal NCLAT that debt-ridden company should come up with a settlement plan that entails "definite upfront payment" of dues.

Earlier, Supertech Ltd was declared bankrupt by the National Company Law Tribunal (NCLT), a move that could have a bearing on more than 10,000 home buyers of the firm's ongoing projects in the Delhi and NCR region.

The NCLT said "there has been a default in payment of the financial debt" and appointed Hitesh Goyal as the Interim Resolution Professional (IRP) superseding the board of Supertech Ltd.

After the NCLT order for insolvency proceedings, the promoters of Supertech Ltd had challenged the ruling before the National Company Law Appellate Tribunal (NCLAT).

Providing some relief to Supertech Ltd, the appellate tribunal last Tuesday stayed the formation of the committee of creditors under the insolvency proceedings till April 19 as the real estate developer sought time to negotiate with banks.

Today, the counsel representing R K Arora, director of the suspended board of Supertech, informed the appellate tribunal that they are "under negotiations" with its financial creditor and had also offered some upfront payment amount along with other terms as has been indicated by the Bank.

Arora's counsel requested for "one more opportunity" to enter into dialogue with the bank for giving "some better proposal".

Accepting the request, a two-member NCLAT bench headed by Chairperson Justice Ashok Bhushan said: "Considering the submissions, we adjourn this appeal to May 2, 2022".

"In the meantime, the interim order shall continue," said NCLAT.

The default pertains to the loan given by the Union Bank of India to Eco Village II project at Greater Noida (West) in Uttar Pradesh, which was being developed at a cost of 1,106.45 crore.

Supertech Ltd has 38,041 flats and out of them, it has delivered 27,111 flats.

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