Authority: Supreme Court of India
Order Date: 11-08-2026
Case Overview
- Parties: Appellant Ram Kishore Arora vs. Bank of Maharashtra & Ors.; proceedings involve Supertech Limited (STL), Supertech Realtors Private Limited (SRPL), Supertech Retails Private Limited (S. Retails), and CFM Asset Reconstruction Private Limited (CFMARC). Amicus Curiae: Mr. Rajiv Jain. Additional Solicitor General: Shri S.V. Raju.
- Nature of Proceedings: Civil appeal concerning corporate governance, asset diversion, and enforcement actions under the SARFAESI Act and Insolvency & Bankruptcy Code (IBC). The Empowered Committee, constituted on 16‑12‑2025, seeks court approval of resolutions, status‑quo orders, and stays on enforcement actions.
- Key Dates: EGM of S. Retails held on 30‑06‑2026; moratorium order for SRPL under IBC dated 20‑01‑2026; Borrower Intimation Letter from CFMARC dated 10‑06‑2026; further hearing scheduled for 01‑10‑2026.
I.A. No. 209975/2026 – Resolutions and Empowerment
- The Empowered Committee applied for approval of EGM resolutions passed on 30‑06‑2026, removal of existing directors (Mr. Bijender Singh and Mr. Mohammad Tariq), and appointment of its nominees (Justice (Retd.) M.M. Kumar, Mr. Rajeev Mehrotra, Mr. Anant Kumar) as directors of S. Retails.
- The Committee also sought: (i) authority to act on all matters of S. Retails; (ii) immunity for Committee members and nominees from litigation arising from their functions; (iii) status‑quo on S. Retails assets; (iv) an affidavit from NOIDA explaining the additional Floor Area Ratio (FAR) granted under the sub‑lease deed dated 26‑12‑2018.
- The Court observed that the appellant and former directors failed to attend the EGM despite notices and rescheduling, indicating non‑cooperation.
- Orders:
1. Approve the EGM resolutions; remove Mr. Bijender Singh and Mr. Mohammad Tariq; appoint the three Committee nominees as directors.
2. Vest the Empowered Committee with full powers to manage S. Retails projects, finances, and operations.
3. Grant immunity to Committee members and any person nominated by it in their capacity as directors, shareholders, or employees of S. Retails.
4. Maintain status‑quo on S. Retails assets; no alienation without written Committee approval.
5. Direct NOIDA to file an affidavit detailing the basis for the additional FAR granted under the 26‑12‑2018 sub‑lease deed, referencing the original lease dated 19‑07‑2011.
6. Continue Mr. Rajiv Jain’s assistance to the Court and the Empowered Committee on matters relating to S. Retails.
I.A. No. 209977/2026 – Stay of SARFAESI Proceedings and Asset Preservation
- The Empowered Committee sought a stay on: (a) any SARFAESI‑Act proceedings against SRPL and its assets, including the Astralis Tower; (b) sale or transfer of S. Retails inventory in hand and assets sold after 12‑06‑2024; (c) creation of third‑party rights over SRPL real‑estate inventory transferred in 2023‑2024 to Anew Address Consultancy Pvt Ltd, Hotshot Developers Pvt Ltd, Wealth Clinic Pvt Ltd, and B.L. Kashyap & Sons Ltd.
- The Court noted a Borrower Intimation Letter from CFMARC (dated 10‑06‑2026) indicating assignment of financial assets/debts previously held by Standard Capital Markets Ltd. under Section 5 of the SARFAESI Act, linked to a Joint Deed of Hypothecation dated 09‑08‑2018 covering 1,239 units (≈ 704,393 sq ft.) and 1,239 parking spaces in the Supernova Project.
- CFMARC and the assignor had not approached SRPL or the Empowered Committee prior to the assignment; Indiabulls Group (original assignor) had not filed any claim in the CIRP of SRPL.
- The Court held that any independent enforcement of the security would interfere with the moratorium protection under Section 14 of the IBC and could prejudice the resolution process, home‑buyers, lenders, and NOIDA.
- Orders:
1. Stay all SARFAESI‑Act proceedings by CFMARC against SRPL and its assets, including the Astralis Tower; restrain CFMARC from taking possession, auctioning, selling, transferring, encumbering, or creating third‑party rights in SRPL assets until further order.
2. Impose a status‑quo on S. Retails, prohibiting any sale, transfer, alienation, encumbrance, or creation of third‑party rights over its current inventory and over assets already sold/transferred after 12‑06‑2024.
3. Maintain status‑quo on SRPL real‑estate inventory transferred in 2023‑2024 to the four named entities; no further disposition until the Court’s further directions.
4. Empower the Empowered Committee to take necessary steps to implement these directions and to seek additional orders as required.
Final Outcome
- The Court approved the EGM resolutions, vested management powers in the Empowered Committee, granted immunity to its members, and imposed a strict status‑quo on S. Retails assets.
- It also stayed all SARFAESI‑Act enforcement actions against SRPL and its assets, preserving the asset pool under the IBC moratorium and preventing third‑party transfers of both SRPL and S. Retails inventories.
Topics: Corporate Governance, Insolvency Proceedings, Real Estate Asset Protection