In Brief
A real estate company (Supertech Ltd.) faced insolvency proceedings following default on Rs. 431.93 crore borrowed from Union Bank of India. The Appellate Tribunal adopted a 'project-wise resolution' approach, limiting the Committee of Creditors to only one project (Eco Village-II) while allowing other projects to continue under interim resolution professional supervision with ex-management assistance. The Supreme Court, applying interim relief principles, held that displacing this arrangement to constitute a single CoC for the entire company would cause irreparable injury to home buyers through project uncertainty. The Court allowed the interim order to operate but directed that for Eco Village-II, no process beyond resolution plan voting may proceed without further Court orders.
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