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Issues: (i) Whether the NCLAT acted within its jurisdiction in impleading NBCC and directing completion of Supertech projects for the protection of home buyers; (ii) Whether the NCLAT's directions (including constitution of Apex Court Committee, project-wise committees, financial mechanism and related modifications) require interference or further modification by this Court.
Issue (i): Whether NCLAT could entrust completion of pending residential and related projects to NBCC as a third-party developer in insolvency proceedings.
Analysis: The Court examined the factual matrix of prolonged non-completion of projects, the remedial mechanism proposed by NCLAT (including NBCC's role as project management consultant/developer), assurances by NBCC, and the object of protecting home buyers under the insolvency framework. The Court considered the interplay between protection of home buyers, creditors' interests, and statutory requirements for sanctions and payments, and noted that NCLAT's directions provided safeguards such as project-wise accounts, joint signatories, and oversight by Apex Court Committee and project committees.
Conclusion: The NCLAT's decision to implead NBCC and direct completion of projects is within jurisdiction and is not contrary to the provisions of the Insolvency and Bankruptcy Code, 2016; the direction to bring NBCC on record for completion of projects is upheld.
Issue (ii): Whether the detailed directions issued by NCLAT (including timelines, financial arrangements, committee constitutions, and compliance by statutory authorities) should be interfered with or modified.
Analysis: The Court reviewed the specific directions of NCLAT (timelines for conditions, project-wise accounts, designated NBCC account, required funding, fee structure, and mechanisms for repayment and distribution), the competing claims of secured creditors and statutory authorities, and the need to prioritize completion for home buyers. The Court confirmed protections for other claimants by preserving adjudication of their claims by the Tribunal and required statutory authorities to consider/revive necessary sanctions within prescribed timelines; it also granted procedural liberties (e.g., NBCC may seek clarification from NCLAT) and appointed amicus curiae to assist monitoring and recommendations.
Conclusion: The Court declined to interfere with the NCLAT directions except for specified clarifications and modifications recorded by this Court; the NCLAT directions (as modified/clarified) are upheld and must be complied with.
Final Conclusion: The appeals lack merit and are dismissed; the impugned NCLAT order bringing NBCC on record and directing measures for completion of projects is upheld subject to the modifications and clarifications made by this Court, with preservation of rights of creditors and statutory authorities to pursue their claims before the Tribunal.
Ratio Decidendi: Where prolonged non-completion of residential projects threatens home buyers' rights, a tribunal may, consistent with the insolvency framework, direct appointment or impleadment of a competent third-party developer and frame supervisory and financial safeguards to secure completion and protect home buyers, without precluding adjudication of other stakeholders' claims by the competent Tribunal.
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