Case Note & Summary
The National Company Law Appellate Tribunal addressed an application filed by NBCC (1) Ltd. seeking modifications to an earlier order regarding the Corporate Insolvency Resolution Process (CIRP) for Supertech Ltd. The CIRP commenced on 25.03.2022 following an application by Union Bank of India. The suspended director of Supertech Ltd. challenged the admission order, leading to the constitution of a Committee of Creditors. Subsequent orders directed project-wise resolutions and allowed NBCC to undertake construction of 16 projects. The Supreme Court affirmed the Tribunal's order on 05.02.2026, granting NBCC the liberty to seek clarifications. The application sought waivers from the Real Estate (Regulation and Development) Act, 2016, veto powers for the Apex Committee, modifications regarding fund infusion, and adjustments to the PMC fee structure. The Tribunal held that it could not grant exemptions from RERA, as it lacked the authority to do so. It clarified that the Apex Committee already had final decision-making powers, negating the need for additional veto powers. Furthermore, it specified that NBCC was to facilitate obtaining finance rather than infusing its own funds. Lastly, the Tribunal maintained that the marketing fee was included in the PMC fee, thus no separate charge was warranted. The application was disposed of accordingly.
Headnote
A) Insolvency Law - Corporate Insolvency Resolution Process - Exemption from RERA - Tribunal held that it cannot grant exemptions from statutory provisions under RERA Act, 2016. The application by NBCC for waiver from compliance with RERA was denied as the Tribunal found it lacked the authority to exempt statutory requirements (Paras 5-10). B) Insolvency Law - Apex Committee Powers - Veto Powers - Tribunal clarified that the Apex Court Committee is the final authority for decision-making regarding project completion, thus no additional veto powers were necessary. The existing structure already empowers the Apex Committee to make final decisions (Paras 11-13). C) Insolvency Law - Financial Contributions - Clarification on Fund Infusion - Tribunal clarified that NBCC was not required to infuse its own funds but to facilitate obtaining necessary finance of Rs. 100 crores for project execution (Paras 14-15). D) Insolvency Law - PMC Fee Structure - Tribunal clarified that the marketing fee is included within the PMC fee, thus no separate marketing fee is chargeable. The total fee structure was adjusted to reflect this clarification (Paras 16-18).
Issue of Consideration
Whether the NBCC can be granted exemptions from the provisions of the Real Estate (Regulation and Development) Act, 2016 and whether the Apex Committee should have veto powers.
Final Decision
The Tribunal dismissed the application for modification, clarifying that it could not grant exemptions from RERA provisions and that the Apex Committee already had final decision-making authority. It also clarified the financial obligations of NBCC regarding fund infusion and the fee structure.
Law Points
- Corporate Insolvency Resolution Process
- RERA exemptions
- Veto powers
- PMC fee structure
- statutory compliance
