The Supreme Court exercised its extraordinary powers under Article 142 of the Constitution to put in place a court-monitored resolution framework for the stalled ‘Supernova’ real estate project of Supertech Realtors Pvt. Ltd. in Noida, prioritising the interests of homebuyers over those of financial creditors.
The Bench comprising Chief Justice of India, Justice Suryakant and Justice Joymalya Bagchi passed the directions while hearing a civil appeal filed by a suspended director of Supertech challenging the NCLAT’s judgment upholding the admission of the company into Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016, at the instance of a consortium of banks.
Noting the “mosaic of competing claims” involving banks, homebuyers, NOIDA authority and other stakeholders, the Court observed that there was broad consensus among parties for a court-monitored resolution. The Court took on record the revised report and recommendations submitted by amicus curiae Rajiv Jain, Advocate, who had highlighted serious lapses on the part of lenders in monitoring the financial discipline of the corporate debtor despite long-standing exposure.
The Court observed that financial creditors had failed to intervene or restructure the debt even when early signs of distress were evident, and that such inaction had substantially contributed to the insolvency. In this backdrop, the Court held that the primacy now claimed by financial creditors stood “considerably weakened”, especially vis-à-vis the rights of homebuyers.
Setting aside the existing insolvency framework, the Court discharged the Interim Resolution Professional, the Committee of Creditors and the suspended Board of Directors, and constituted an empowered three-member Court-appointed Committee to oversee completion of the project. The Committee will be chaired by Justice M.M. Kumar, former Chief Justice of the Jammu & Kashmir High Court and former President of the NCLT, and will include experts in construction and financial management.
The Committee has been vested with the powers of the Board of Directors and directed to appoint a new developer through a transparent process, excluding any entity associated with the erstwhile management. All receivables, unsold inventory and fresh collections are to be routed through an escrow account strictly for construction purposes.
In a significant relief to homebuyers, the Court directed a “zero period” with respect to dues payable to NOIDA Authority and financial lenders, restraining them from taking any coercive action until completion of the project and handing over of units. Development authorities, including NOIDA, were also directed to process approvals and register sub-lease deeds without insisting on clearance of past dues.
The Court further ordered a forensic audit of the accounts of the corporate debtor and its parent company, and permitted the Committee to seek further directions from the Supreme Court as and when required.
The matter has been listed for further consideration on January 20, 2026.
Appearances:
For Appellant(s) : Mr. Shyam Diwan, Sr. Adv.; Mr. Rakesh Kumar Jain, Sr. Adv.;Mr. Siddharth Bhatli, Adv.; Mr. Dinesh Kumar Garg, AOR; Ms. Lashita Dhingra, Adv.; Mr. Abhishek Garg, Adv.; Mr. Dhananjay Garg, Adv.; Mr. Shashi Kant Sharma, Adv.; Dr. Mansi Jain, Adv.; Mr. I.S Jain, Adv.
For the Respondent(s) : Mr. Rajiv Jain, Amicus Curiae; Ms. Rohini Prasad, AOR; Ms. Ashika Ranjan, Adv.; Ms. Eshna Kumar, Adv.; Ms. Zaid Hashmat, Adv.; Ms. Shruti Sakshi, Adv.; Mr. Prateek Badhwar, Adv.; Ms. Shaguftha Hameed, Adv.
Mr. Ajit Kumar Sinha, Sr. Adv.; Mr. K Parameswar, Sr. Adv.; Mr. Omanakuttan K. K., AOR; Ms. Rambha Singh, Adv.; Mr. Akhilesh Kumar Mishra, Adv.; Mr. Vaishak Omanakuttan, Adv.; Ms. Laiba Arif, Adv.; Mr. Ankur Kumar, Adv.; Mr. Ritwik Parikh, AOR
Mr. S Niranjan Reddy, Sr. Adv.; Mr. Ajay Bhargava, Adv.; Ms. Wamika Trehan, Adv.; Mr. Siddhant Kumar, Adv.; Mr. Varun Chopra, Adv.; M/S. Khaitan & Co., AOR
Ms. Radhika Narula, Sr. Adv.; Ms. Anushna Satpathy, Adv.; Ms. Chitrangada Singh, Adv.; Ms. Radhika Jalan, Adv.; Ms. Widaphi Lyngdoh, Adv.; Mr. Yashas J, Adv.; Ms. Maira Sharma, Adv.; Mr. Vaibhav Yadav, Adv.; Mr. Paras Mohan Sharma, Adv.; Mr. Mandeep Kalra, AOR
Mr. Rachit Mittal, AOR; Mr. Parish Mishra, Adv.; Mr. Kanishk Raj, Adv.; Mr. Adarsh Srivastava, Adv.; Mr. Abhishek Sinha, Adv.; Mr. Shivansh Bansal, Adv.
Mr. Gaurav Bhatia, Sr. Adv.; Mr. Neelmani Guha, Adv.; Mr. Vikash Tiwari, Adv.; Mr. Mukesh Kumar, AOR
Mr. Govind Jee, AOR; Ms. Rambha Singh, Adv.; Ms. Laiba Arif, Adv.; Mr. Ankur Kumar, Adv.
Mr. Gautam Gupta, Adv.; Mr. Uzair Elahi, Adv.; Mr. Rituparn Uniyal, AOR
Mr. Narender Hooda, Sr. Adv.; Mr. Gajanand K., Adv.; Mr. Shivam Rajpal, Adv.; Mr. Ankit Tiwari, Adv.; Ms. Tanya Singh, Adv.; Mr. Faisal Sharwani, Adv.
