In a major relief to thousands of distressed homebuyers, the Supreme Court on Thursday invoked its extraordinary constitutional powers under Article 142 to uphold the National Company Law Appellate Tribunal’s (NCLAT) decision directing the National Buildings Construction Corporation (NBCC) to complete 16 stalled housing projects of debt-ridden Supertech Limited.
A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi affirmed the NCLAT’s December 12, 2024 order and restrained all tribunals and high courts across the country from passing any directive that could hinder the construction of the pending projects being executed by NBCC.
Supertech, a major real estate developer now under insolvency proceedings, had promised around 51,000 housing units to buyers between 2010 and 2012. However, a significant number of these projects have remained incomplete for over a decade, leaving homebuyers in prolonged uncertainty.
Recognising the prolonged suffering of these allottees, the court stated:
“The interest and dues of the financial and operational creditors can be addressed only after the delivery of fully-furnished houses to the homebuyers.”
The court further clarified that the completed houses must come with all promised amenities, including electricity, water supply, sewage systems, proper roads, and parks in the surrounding areas.
Weighing the interests of other stakeholders, the bench ruled that creditors—both financial and operational—would need to accept the “haircut” deemed fair and equitable by the National Company Law Tribunal (NCLT) and the NCLAT.
“We find that the order passed by the NCLAT on December 12, 2024, in bringing the NBCC on record for the completion of the pending housing projects is neither unfair nor contrary to the provisions of the Insolvency and Bankruptcy Code (IBC),” the bench observed.
The Supreme Court exercised its extraordinary powers under Article 142 to ensure the completion of the long-delayed projects. This constitutional provision empowers the court to pass any order necessary to do “complete justice” in any cause or matter pending before it.
The bench directed NBCC to take over and expedite construction as per the roadmap devised by the expert committee constituted by NCLAT. The committee has also been tasked with extending full support to NBCC in the execution process.
To prevent further legal roadblocks, the Supreme Court categorically restrained all courts and tribunals from issuing any orders that may stall or interfere with the NBCC’s construction work.
The matter had previously seen a stay from the top court on February 21, 2025, on the appointment of NBCC as the project management consultant, involving an estimated cost of ₹9,500 crore. With Thursday’s ruling, that stay has now been lifted.
In conclusion, the court disposed of all related pleas but kept the door open for any party to approach the apex court in case of fresh developments that could impact the ongoing work.
