SC Orders Builder’s IRP to Deposit Rs. 1 Crore More and Permits Distribution of Rs .1 Crore to 15 Homebuyers

Supreme Court Law Insider

Aastha Thakur

Published on: 16 October 2022 at 22:52 IST

The Interim Resolution Professional (IRP) of Supertech Ltd. had deposited Rs. 1 crore with the Apex Court’s Registry in accordance with the decision dated 26.08.2022, and the Supreme Court ordered the disbursal of the money on Friday. Pro rata distribution of the funds has been ordered among the 15 applicants.

The Apex Court requested that the IRP deposit Rs. 1 crore with the Supreme Court Registry by September 30, 2022. This request was made on August 26, 2022. The Court was notified by the Amicus Curiae, Mr. Gaurav Agarwal, on Friday that the funds had been deposited and that they should be distributed.

Before the next hearing date, the Court had already instructed Mr. Agarwal and the IRP to jointly determine the outstanding homebuyers’ debts and submit the information so that instructions on the release of the abovementioned amount may be granted.

The Bench of Justices DY Chandrachud and Hima Kohli instructed the IRP to deposit an additional Rs. 1 crore with its Registry on or before 08.12.2022, after reviewing the information supplied by the Amicus. The funds will be pro rata given to the 15 applicants after deposit.

The Bench said that the disbursement to the homeowners must be made precisely in accordance with their promise to use the money for settling any outstanding loans, should there be any.

The IRP’s attorney informed the bench that the National Company Law Appellate Tribunal had instructed that 70% of the company’s earnings be used for construction and 30% for administrative costs when it appointed the IRP as the company’s manager.

He asked the Bench to note in its ruling that the money must be paid from the corporate debtor’s account in light of this. Accordingly, the Bench noted –

“The amount be paid in above terms by IRP out of the account of the Corporate Debtor.”

The Apex Court ordered the Company’s twin towers to be demolished for violating building codes in the main judgement dated August 31, 2021, and the Bench was debating a contempt petition submitted by Supertech flat buyers alleging non-compliance with the direction to pay refund to the flat buyers as per that judgement.

Related Post