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Judgment
Ashok Bhushan, J.
IA No.307 of 2025 has been filed by the Appellant- Ram Kishore Arora seeking various reliefs. IA No.862 of 2025 has been filed by M/s. Shree Shyam Vendors Association praying for certain directions. IA No.927 of 2025 has been filed by Bhanu Priya, an employee of Supertech Ltd. praying for certain reliefs. IA No.1082 of 2025 has been filed by IRP of Supertech Ltd. praying for various directions.
Before we notice the various prayers made in the applications, certain background facts giving rise to these applications need to be noticed:-
Company Appeal (AT) (Insolvency) No.406 of 2022 has been filed by Suspended Director of the Corporate Debtor challenging the order passed by the NCLT, New Delhi initiating CIRP process against Supertech Ltd. (Corporate Debtor) on an application filed under Section 7 by Union Bank of India. An interim order was passed in Company Appeal directing the IRP not to constitute the CoC. Corporate debtor, the real estate company had launched various real estate projects. The promoters of the corporate debtor contended before this Tribunal that with regard to ongoing projects, construction be permitted to carry on under the supervision of the IRP with the assistance of promoters, its officers and employees. Promoters had contended that they had infused funds as necessary for carrying out the construction. This Tribunal after hearing the parties issued direction on 10.06.2022 in the present appeal. Paragraph 25 of the order dated 10.06.2022 is as follows:-
“25.In view of the foregoing discussions, we issue following Interim Directions:
i.The Interim Order dated 12th April, 2022 continuing as on date is modified to the extent that IRP may constitute the CoC with regard to the Project Eco Village II only.
ii.After constitution of CoC of Eco Village II Project, the IRP shall proceed to complete the construction of the project with the assistance of the ex-management, its employees and workmen.
iii.With regard to the Eco Village II Project, the IRP shall proceed with the completion of the project, Resolution and shall be free to prepare Information Memorandum, issue Form G, invite Resolution Plan however no Resolution Plan be put for voting without the leave of the Court.
iv.All receivables with regard to the Eco Village II Project, shall be kept in the separate account, earmarked account and detail accounts of inflow and outflow shall be maintained by the IRP.
v.That all other projects of the Corporate Debtor apart from Eco Village II Project shall be kept as ongoing project. The Construction of all other projects shall continue with overall supervision of the IRP with the assistance of the ex-management and its employees and workmen.
vi.The promoter shall infuse the funds as arranged by it in different projects which shall be treated as Interim Finance regarding which detail account shall be maintained by the IRP.
vii.No account of Corporate Debtor shall be operated without the counter signature of the IRP. All expenses and payments in different projects, shall be only with the approval of the IRP. All receivables in different projects shall be deposited in the account as per 'RERA' Guidelines and 70% of the amount shall be utilized for the construction purpose only. With regard to the disbursement of rest of the 30%, appropriate direction shall be issued subsequently after receiving the status report and after hearing all concerns.
viii.The IRP shall obtain approval of the CoC which is directed to be constituted for Eco Village II Project and incur all the expenses regarding the said projects and further incur the expenses accordingly.
ix.With regard to the expenses to other projects for which no CoC has been constituted, IRP is at liberty to submit a proposal for payment of various expenses including 'CIRP' expenses to this Tribunal.
x.The Promoters of the Corporate Debtor shall be at liberty to bear any expenses as requested by the IRP without in any manner utilizing any of the funds of the Corporate Debtor.
xi.Let the IRP submit a further Status Report within six weeks from today regarding Eco Village II Project and all other projects.
xii.The Parties are at liberty to file an I.A. for any direction/clarification in the above regard.
xiii.List this Appeal on 27th July, 2022.”
It is to be noted that against the order dated 10.06.2022, an appeal was filed in the Hon’ble Supreme Court in which appeal, an interim order came to be passed on 11.05.2023. By order dated 11.05.2023, the Hon’ble Supreme Court observed that the order dated 10.06.2022 passed by this Tribunal be implemented. After the order passed by the Hon’ble Supreme Court on 11.05.2023, the proceedings continued in the appeal, this Tribunal permitted the IRP and other stakeholders to come with the proposal for project-wise resolution. Before this Tribunal, NBCC filed an application IA No.6557 of 2024 expressing its willingness to undertake the construction of project of Supertech Ltd. This Tribunal after hearing the counsel for the IRP, NBCC as well as other stakeholders passed an order on 12.12.2024 allowing IA No.6557 of 2024.
IA No.307 of 2025 was filed by the Appellant on 07.01.2025. IA No.862 of 2025 was filed by M/s. Shree Shyam Vendors Association on 30.01.2025 whereas IA No.927 of 2025 has been filed by Bhanu Priya, an employee of Supertech Ltd. on 06.02.2025 and IA No.1082 of 2025 filed by the IRP on 09.02.2025. Against the order dated 12.12.2024, Civil Appeals have been filed by different stakeholders including the Appellant. Hon’ble Supreme Court passed an order on 21.02.2025 staying the operation of the order dated 12.12.2024. The above noted four applications were heard by this Tribunal and by an order dated 19.02.2025, orders were reserved in the above four applications. The Hon’ble Supreme Court in its interim order passed on 21.02.2025 while staying the operation of the order dated 12.12.2024 also made following observations:-
“Till the next date of hearing, the operation of the impugned judgment will remain stayed.
We make it clear that orders passed by New Okhla Industrial Development Authority, Greater NOIDA Authority and the Yamuna Expressway Industrial Development Industrial Development Authority cancelling any lease(s) shall also remain stayed.
The resolution professional/interim resolution professional will undertake duties and obligations as assigned to him in terms of the IBC, till the next date of hearing.
The orders passed by the adjudicating authority on the functioning of the corporate debtor through the Resolution Professional during the Corporate Insolvency Resolution Process shall, accordingly, continue to operate.
We are informed that certain orders have been reserved. It will be open to the NCLAT/National Company Law Tribunal to pronounce the orders.”
After noticing the above sequence of the events, we now proceed to consider the above applications.
IA No.307 of 2025
IA No.307 of 2025 has been filed by the Appellant in which application following prayers has been made:-
“(i)The present Application may kindly be allowed.
(ii)Direct the IRP to comply with Order dated 10.06.2022 till the time NBCC complies with the conditions imposed by the Hon'ble Court vide Order dated 12.12.2024.
(iii)Direct the IRP to Include the Appellant in all Communications with contractors, employees, and vendors, ensuring compliance with the Hon'ble Tribunal's order dated 12.12.2024 and facilitating effective supervision;
iv) Direct the IRP to comply with the Orders of the Hon'ble Tribunal, specifically regarding the continuation of work on the project sites and the maintenance of the Corporate Debtor's operational status;
(v)Direct the IRP to immediately clear and dispersed dues of all the employees, vendors and contractors who are actively working on site;
(vi)Pass any other interim reliefs as this Hon'ble Appellate Tribunal deems fit and proper in the facts and circumstances of the instant case.”
We have heard Shri Abhijeet Sinha, Learned Senior Counsel for the Applicant and Shri Nakul Diwan, Learned Counsel for the IRP.
Shri Abhijeet Sinha, Learned Senior Counsel submits that under the order dated 12.12.2024, this Tribunal had directed the NBCC to undertake construction of 16 projects. There are other ongoing projects of the corporate debtor. Apart from the above 16 projects, the order dated 10.06.2022 which was passed by this Tribunal with regard to carrying out construction of the projects of the corporate debtor and mechanism for construction still continues to operate and with regard to other 9 projects, the IRP was obliged to carry on the construction as per the mechanism which was operating as per the order dated 10.06.2022. It is submitted that the IRP was also to take steps with regard to payments of employees’ salary, clearing dues of vendors and contractors ensuring construction continuity. It is further contended that the appellant’s involvement in the projects ought to have been continued who was rendering valuable assistance to the IRP regarding construction of the projects. It is submitted that with respect to 9 completed projects, IRP along with applicant, promoter shall oversee these projects in accordance with the order dated 10.06.2022.
Counsel for the IRP submits that the IRP has to carry on construction with regard to projects of corporate debtor and after the order dated 12.12.2024, obstruction was creating in access to the project site by vendors due to which steps in pursuance of the order dated 12.12.2024 could not be taken. Allegations made by the appellant against the IRP are unfounded. IRP has been taking steps for payment of salary of the employees. Salary of December 2024 has been paid and with regard to January 2025 salary also has been processed. It is submitted that the salary due from September 2024 to November, 2024 shall be paid in three tranches before 31.05.2025. It is submitted that necessary direction be issued by this Tribunal. IRP has filed separate application being IA No.1082 of 2025 seeking various directions which need to be considered.
By interim order passed by the Hon’ble Supreme Court on 21.02.2025, as noticed above, the order dated 12.12.2024 has already been stayed, hence, no steps need to be taken under the said order dated 12.12.2024. The Hon’ble Supreme Court also in its interim order dated 21.02.2025 has observed that the IRP will undertake duties and obligations as assigned to him in terms of the IBC till the next date of hearing. IRP is entrusted for carrying out the construction of the projects as per the order passed by this Tribunal as noticed above. IRP is the person who has to take necessary steps regarding the corporate debtor including steps for keeping the corporate debtor as a going concern. Order dated 12.12.2024 having been stayed by the Hon’ble Supreme Court, we are of the view that all parties are to act in accordance with the earlier order dated 10.06.2022 passed by this Tribunal till any further orders are passed by the Hon’ble Supreme Court. We, thus, are of the view that IA No.307 of 2025 filed by the Appellant need to be disposed of with following directions: -
All projects of the corporate debtor are under the supervision of the IRP. It is the IRP who has to take steps regarding carrying out the construction and taking all necessary steps with the projects of the corporate debtor with the assistance of the appellant, its officers and employees.
The order dated 10.06.2022 passed by this Tribunal still being in operation, all concerned including the IRP has to take steps in accordance with the directions till any further orders are passed by the Hon’ble Supreme Court. With regard to salary of employees and those of vendors, there are separate applications filed in which we shall notice the submissions and necessary direction while considering the said applications.
IA No.307 of 2025 is disposed of accordingly.
IA No.862 of 2025
This application has been filed by Shree Shyam Vendors Association which claim to be association of operational creditors/vendors of the corporate debtor. The applicant grievance is that the dues of several vendors/ operational creditors who have supplied the materials and rendered services after commencement of the CIRP is still outstanding. The vendors/operational creditors have supplied materials including essential tools, equipments, plant and machinery which are still lying in the project site. Plant and machinery and tools are not being allowed to be removed by the IRP from the site. Members of the appellant’s association have played a critical role in providing essential supplies and services to the corporate debtor. These services including construction works, tile and plaster work, finishing work, firefighting, electricity, plumbing, painting, raw material procurement and operational support etc. IRP has failed to effectively discharge their statutory duties. Applicant in IA has prayed for following reliefs:-
“A. To admit and allow the present I.A. and pass supplemental order of the order dated 12.12.2024 or modify the order dated 12.12.2024 passed by the Hon'ble National Company Law Appellate Tribunal, Principal Bench, New Delhi in I.A. No. 6557 of 2024 in Company Appeal (AT) (Ins) No. 406 of 2022 with respect to consideration of the payment of the post-CIRP costs of the operational creditors/vendors in compliance with the provisions under Section 5(13) and Section 30(2) of the Insolvency and Bankruptcy Code, 2016; Seeking for direction.
B. To admit and allow the present I.A. and pass supplemental order of the order dated 12.12.2024 or modify the order dated 12.12.2024 with respect to consideration of payment of the pre-CIRP claims of the operational creditors/vendors in para 77 of the order dated 12.12.2024(70%-30%) passed by the Hon'ble National Company Law Appellate Tribunal, Principal Bench, New Delhi in I.A. No. 6557 of 2024 in Company Appeal (AT) (Ins) No. 406 of 2022; and
C. To admit and allow the present I.A. and pass the supplemental order of the order dated 12.12.2024 or modify the order dated 12.12.2024 with respect to inclusion of operational creditor's representatives in Apex Court Committee and Project-wise Court Committees in para 78 of the order dated 12.12.2024 passed by the Hon'ble National Company Law Appellate Tribunal, Principal Bench, New Delhi in I.A. No. 6557 of 2024 in Company Appeal (AT) (Ins) No. 406 of 2022; and
D. To admit and allow the present I.A. and issue necessary directions to the IRP to allow removal of construction materials lying on the site, inclusive of perishable items cement, chemicals etc. and iron, tools, equipment, plants & machineries which belong to the operational creditors/vendors; and
E. To admit and allow the present I.A. and issue necessary directions to the IRP to certify all running bills submitted by the operational creditors, including those incurred during the Corporate Insolvency Resolution Process (CIRP); and
F. To admit and allow the present I.A. and issue necessary directions to the Interim Resolution Professional (IRP) to make payment of all idle charges and rental charges incurred by the operational creditors due to the prolonged holding of tools, equipment, plant and machinery at the project sites and treating these expenses as part of the Corporate Insolvency Resolution Process (CIRP) costs under the provisions of the Insolvency and Bankruptcy Code, 2016; and
G. To admit and allow the present I.A. and issue necessary directions to the Interim Resolution Professional (IRP) to release the payment of the outstanding amount pertaining to CIRP period being CIRP Costs on the basis of Proforma Invoice(PI) of the operational creditors/vendors and tax invoice to be submitted by the operational creditors/vendors at the time of receipt of the payment.
H. Pass any other order(s) that this Hon'ble Court deems fit and proper in the interest of the justice.”
IRP has filed the reply to the IA. Rejoinder affidavit has also been filed by the Applicant.
We have heard Shri Krishnendu Datta, Learned Senior Counsel for the applicant and Shri Nakul Diwan, Learned Counsel for the IRP.
Shri Krishnendu Datta, Learned Senior Counsel for the Applicant submits that the Applicants who are vendors/ operational creditors have been playing an essential role in running the corporate debtor as a going concern after commencement of the CIRP. Their payments have not yet been cleared. It is submitted that the Applicant is not seeking any direction for the pre-CIRP period outstanding dues, however, Applicants are entitled for receiving their outstanding dues subsequent to the CIRP period. It is further submitted that the bills have been submitted by the vendors/ operational creditors. Although some bills have been verified but payments are awaited. It is submitted that several bills have not been verified under the mechanism which is current till 12.12.2024.
Counsel for the IRP submits that certain prayers in the application are in essence of modification of the order dated 12.12.2024 which cannot be entertained. It is submitted that all vendors/ operational creditors have not submitted their bills. Apprehension of the applicant that for verification of the bills, some new mechanism has been availed by the IRP is incorrect. The bills which have been submitted prior to 12.12.2024 shall be assessed as per the mechanism which was current. IRP has engaged a Project Management Consultant (PMC) to verify the bills submitted by vendors. In paragraph 34 of the reply filed by the IRP, the process as undertaken by the IRP is as follows:-
“34.In relation to the above process, it is after taking charge as the IRP of the Corporate Debtor, the Respondent No.1 had engaged a project management consultant to verify the bills submitted by the vendors. The process followed for such verification was as follows:
a. All work carried out by the vendors was after issuance of a work order by the Corporate Debtor signed by the project director/site team to the concerned vendor.
b. After completion of the work, the vendor would raise a bill and submit it to the project director, who would then confirm/validate the work done as per the work order issued by the Corporate Debtor.
c. After the validation of the bill, the finance controller of the Corporate Debtor will verify the invoice and create a note for approval, which is sent to various departments along with all the supporting documents. This note for approval along with supporting documents will then simultaneously be submitted to the project management consultant for further verification, after which the said verified bill is recorded in the SAP system of the Corporate Debtor. Once recorded in the SAP software, the bill is sent for final verification and payment.
d. On the above-mentioned process, there have been delays/ non-submission/non-verification at multiple levels owing to which the bills have not been verified/ being reflected in SAP and reconciliation etc. is pending.”
It is submitted that there have been delays in non-submission or non-verification due to which payments are outstanding. Till the bills are verified by PMC with co-operation of the vendors/operational creditors who have to co-operate in the measurement, bills cannot be cleared. It is submitted that the IRP is taking steps towards payment of the vendors/ operational creditors after verification of the bills. It is contended by the IRP that the payments of vendors cannot be made at one go and payments has to be made in a gradual manner as permitted by financial condition of the corporate debtor. Contractors who have not submitted their bills should submit their bills within two weeks and in the verification process, the vendors/operational creditors as well as the employees of the corporate debtor to render all co-operations to complete the verification. IRP be given access to all necessary datas. Vendors/contractors to co-operate with IRP team and facilitate inspection verification process, contractors to provide item-wise list of assets that they claim to be available on the project site along with adequate proof. Till the verification and inspection is not completed, no vendors or contractors shall be permitted to remove/ dispose of any machinery assets from the project site. Vendors/operational creditors have also claimed that the corporate debtor has allotted certain units in lieu of their payments; details of units allotted by the corporate debtor may be provided to take a call with regard to adjustment of their claims, if any.
We have considered the submissions of the counsel for the Applicant as well as the counsel for the IRP.
Under the order dated 10.06.2022, the projects of the corporate debtor are being run as a going concern under the supervision of the IRP. The construction has been carried out with the co-operation/assistance rendered by the promoters and their staff and employees. As observed above, the order dated 10.06.2022 being still in operation, all have to act in accordance with the said direction. Any expenses incurred in carrying out the construction, supply of materials and services during the CIRP period payment of CIRP costs has to be paid in priority. It is the case of the parties that earlier the vendors were being paid for their supplies/services which process has halted after 12.12.2024 order. As noted above, order dated 12.12.2024 having been stayed by the Hon’ble Supreme Court on 25.02.2025, we are of the view that the process of payments to the vendors, suppliers, operational creditors which was being undertaken by the IRP should be continued in the same manner and process. We clarify that for verification of the bills, the same process shall be followed which was being carried on till the order dated 12.12.2024 passed. Counsel for the IRP has categorically stated that no new mechanism for verification of the bills is being adopted nor shall be implemented and verification of the bills shall be carried out as per the process which was being adopted. In view of the submissions of the counsel for the parties and suggestions given by the parties, we dispose of IA No.862 of 2025 with following directions:-
The IRP shall verify/finalise the bills received from vendors/operational creditors as per the process which was being adopted prior to passing of the order dated 12.12.2024.
Vendors/operational creditors who have not submitted their bills may submit their bills within period of two weeks from today so as to begin the process of verification at an early date.
IRP who is carrying his duties in accordance with the powers given under the IBC as well as the directions of the Hon’ble Supreme Court in order dated 25.02.2025, shall commence payment of bills which have been verified in a phased manner.
The vendors/operational creditors shall render all assistance to the IRP and IRP team for purposes of verification.
The vendors/operational creditors shall not be entitled to remove any material plant and machinery from the site till verification of the materials plant and machinery is completed and inventories are prepared. With regard to removal of the materials plant and machinery on the different project site of the corporate debtor, vendors/operational creditors have to act in accordance with the directions issued by the IRP and IRP team.
IRP shall take steps towards payment of dues of the vendors/operational creditors as per the financials available in accordance with law.
IA No.862 of 2025 is disposed of accordingly.
IA No.927 of 2025
This application has been filed by one Bhanu Priya claiming to be an employee of the corporate debtor who has been paid regular salary. From September 2024, no payments were made. It is contended that it is the obligation of the IRP who is discharging duties under Section 17 of the IBC to manage the affairs of the corporate debtor and make payment of salary. Following prayers have been made in the application:-
“a)To direct the IRP to pay the Applicant the pending salaries from September 2024 and ensure timely disbursal of future payments and Issue necessary directions/orders to protect the Applicant from any form of coercion, intimidation, or physical harm by the IPR or his agents.
b)Recommend Insolvency and Bankruptcy Board of India to look into the conduct and take appropriate actions against the RP of Supertech Ltd.
c)Pass any other further order as this Hon'ble Tribunal may deem fit and proper under the facts and circumstances of the instant case.”
We have heard Shri Tanveer Mir Ahmed, Learned Senior Counsel with Shri Karan Valecha, Learned Counsel for the Applicant and Shri Nakul Diwan, Learned Counsel for the IRP.
IA No.927 of 2025 came to be heard before this Tribunal on 10.02.2022 on which date, following order was passed:-
“1.This Application has been filed by an employee seeking a direction for payment of salary.
2.It is submitted by the Counsel for the Appellant that salary is due from the month of September 2024 to the employees.
3.Learned Sr. Counsel Mr. Diwan submits that with regard to salary for December, instructions have been issued for bank transfer and for January salaries, the processing is being made. He has submitted that he has taken the matter to the ACC and the certain recommendations has been made.
4.Appellant objects that the matter of salary need not be taken to the ACC.
5.In view of the aforesaid, we direct the salary for the month of December to be released within one week from today i.e., by 17.02.2024 and with regard to salary for January as submitted by IRP the processing may be done and as early as possible the salary for January may also be released.
6.Rejoinder to the Application may also be filed before the date fixed.
7.It goes without saying that personal head, the HR Mr. Arun Mathur may extend his cooperation and ensure that salary may be released within a week.
List this Application on 18th February, 2025 at 02:00 PM.”
Counsel for the IRP submits that in pursuance of the order passed by this Tribunal, salary for December 2024 has been paid to the employees of the corporate debtor and salary for January, 2025 has also been processed. It is submitted that the balance salary from September 2024 to November 2024 shall be paid in three tranches up to 31.05.2025.
IRP has also filed a reply to the IA. Counsel for the IRP submits that co-operation/assistance of employees of the corporate debtor is required for preparing the salary payments advice and invoices. The funds of the corporate debtor have been depleted. There were no sufficient funds to pay the salary of the employees, hence, some delay has been caused. However, IRP is taking steps to pay all outstanding dues.
We have considered the submissions of the counsel for the parties and perused the record.
We have noticed the submissions of the IRP that salary for December 2024 has been paid and salary for the month of January 2025 has also been processed and was to be paid in February itself. With regard to outstanding salary for September, October and November, 2024, IRP has stated that the said outstanding salary be paid in three tranches up to 31.05.2025. IRP being the authority to run the corporate debtor as a going concern has to take all steps for meeting necessary expenses including salary. By recording the statement of IRP that outstanding salary for September, October and November 2024 shall be paid by 31.05.2025 in three tranches, we dispose of the application. All outstanding salary shall be paid by 31.05.2025. The employees and officers of the corporate debtor shall render all necessary assistance to the IRP with respect to preparation of salary, bills, invoices etc.
IA No.972 of 2025 is disposed of accordingly.
IA No.1082 of 2025
This is an application filed by the IRP seeking various directions. The application was filed by the IRP on 11.02.2025 as noticed. In the application, the applicant has given the details of events which took place after the order dated 12.12.2024. Applicant has pleaded non-cooperation or obstruction from the vendors/ operational creditors as well as the promoters of the corporate debtor in inspection of projects/ taking possession of the projects for carrying out the order dated 12.12.2024. In the application, applicant has prayed following reliefs:-
“i)Direct the Respondent No.1 to desist from interference with the actions of the Applicant and the Apex Court Committee constituted by this Hon'ble Tribunal vide its order dated 12 December 2024 and provide all requisite documents, information and infrastructural support sought by the Applicant on behalf of the ACC to implement the order dated 12 December 2024 passed by this Hon'ble Tribunal.
(ii)Direct the Respondent No.3 and its members to immediately vacate the projects occupied by them and ensure peaceful handover of the projects of the Corporate Debtor covered under the order dated 12 December 2024 to the Respondent No.4, in order to ensure compliance with the directions contained in the order vis-à-vis achievement of Day Zero conditions set out thereunder.
(iii)Direct the Respondent No.2 to provide suitable assistance to the Applicant in the discharge of its duties as the IRP of the Corporate Debtor by providing requisite security arrangements to the Applicant, ACC and PWCC members, as well as for the project sites of the Corporate Debtor as and when requested to ensure compliance with the NBCC Approval Order and the timelines contemplated thereunder.
(iv)Pass any such further or other orders/directions as this Hon'ble Appellate Tribunal deems fit and proper in the facts and circumstances of the case.”
We have already noticed that the operation of the order passed by this Tribunal dated 12.12.2024 has been stayed by the Hon’ble Supreme Court vide its order dated 25.02.2025. As on date, there is no question of taking steps in compliance of the order dated 12.12.2024. The reliefs which are claimed in the application is principally with respect to compliance of the order dated 12.12.2024. We, thus, are of the view that as on date, no order needs to be passed in IA No.1082 of 2025. Consideration of IA No.1082 of 2025 is deferred with liberty to the IRP making a request for fixation of the date in IA.
IA Nos.307, 862 & 927 of 2025 are disposed off. Hearing of IA No.1082 of 2025 is deferred.