The Supreme Court of India has exercised its extraordinary powers under Article 142 of the Constitution to ensure completion of the long-stalled Supernova real estate project in Noida, setting aside the existing insolvency framework and appointing a three-member court-monitored committee to take charge of the resolution process.
A Bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi was hearing Civil Appeal No. 11052 of 2025 filed by Ram Kishore Arora, a suspended director of Supertech Realtors Pvt. Ltd., challenging the August 13, 2025 judgment of the NCLAT which had upheld initiation of Corporate Insolvency Resolution Process (CIRP) against the company under Section 7 of the Insolvency and Bankruptcy Code, 2016.
The Supernova project, located in Sector 94, Noida, is a mixed-use development consisting of residential apartments, commercial and office spaces, service apartments, studio units, and shopping centres. The Court noted that the project involved a complex web of competing claims among multiple stakeholders, including home buyers, financial institutions, the Interim Resolution Professional, NOIDA, the apartment owners association, and the suspended management.
Given the prolonged stalemate, the Court had earlier appointed senior advocate Rajiv Jain as amicus curiae to consult stakeholders and suggest a workable solution. Relying on the amicus reports submitted in September and November 2025, the Court observed that despite differing claims, there was broad consensus among stakeholders in favour of a court-supervised resolution mechanism.
In a strong remark against lenders, the Court held that financial creditors had failed to act in time despite early warning signs of distress, and that their present claim of primacy stood diluted in view of their prolonged inaction, especially when weighed against the interests of home buyers.
Terming the matter fit for invoking Article 142 to “do complete justice,” the Court discharged the Interim Resolution Professional, the Committee of Creditors, and the suspended Board of Directors. In their place, it constituted a court-appointed committee comprising Justice M.M. Kumar (former Chief Justice of the Jammu and Kashmir High Court and former President of the NCLT) as Chairperson, Dr. Anoop Kumar Mittal as construction and project management expert, and Mr. Rajeev Mehrotra as financial expert.
The committee has been vested with the powers of the Board of Directors and authorised to appoint a new developer through a transparent process. Developers connected with the existing management have been expressly barred from participating. The role of the erstwhile promoters has been confined strictly to technical cooperation.
Granting major relief to home buyers, the Court declared a “zero period,” directing that no payments would be made to lenders or NOIDA until completion of the project and handover of dwelling units. During this period, no coercive action can be taken against home buyers who have already paid their consideration. Any surplus generated after completion will be used to settle dues of lenders and NOIDA.
The Court also directed NOIDA and other authorities to grant approvals and register sub-lease deeds for fully paid units without insisting on clearance of past dues. A forensic audit of the corporate debtor and its parent company has also been ordered, with all receivables and collections to be routed through an escrow account strictly for construction purposes.
While the committee is required to consult stakeholders, its decisions will be final and binding. The matter has been listed for further consideration on January 20, 2026.
Case Title:
Ram Kishore Arora v. Bank of Maharashtra & Ors., Civil Appeal No. 11052 of 2025
