New Delhi, Sep 4 (PTI) The Supreme Court on Thursday mulled setting up a committee to oversee the bidding process and appointment of a co-developer for the construction of stalled residential apartments, offices, retail space besides a luxury hotel by Supertech Realtors.

Supertech Realtors is a subsidiary of beleaguered realty major Supertech, which is facing insolvency proceedings along with some other group companies.

Supertech Realtors is developing the Supernova project at a cost of Rs 2,326.14 crore on a land measuring 70,002 square metre at Sector 94 in Noida.

The building under the project is believed to comprise 80 floors, being the tallest building in Delhi-NCR with a 300-metre height.

A bench of Justices Surya Kant and Joymalya Bagchi underscored the need to safeguard the interest of homebuyers and refused to grant approval to the settlement between Supertech Realtors and Parmesh Construction Company for the project's development.

"We need to move forward. We can appoint a committee which will oversee the bidding process for appointment of a co-developer for completion of the project. It will help in maintaining transparency in the process. Parmesh Construction Company or any other company can bid for being the co-developer for the projects," the bench told senior advocate Shyam Divan, appearing for promoter Ram Kishore Arora.

The bench, which restrained the Interim Resolution Professional (IRP) from precipitating the process, asked him to not frustrate the proceedings.

"Just keep everything in abeyance," the bench told the counsel appearing for the IRP while asking him to put a notice on his website inviting suggestions from all stakeholders on appointment of committee and the way forward.

The bench, which also perused a report of the amicus curiae advocate Rajiv Jain, said certain adverse remarks have been made against Parmesh Construction Company in the August 13 order of the the National Company Law Appellate Tribunal (NCLAT).

Advocate Govind Ji, appearing for Supernova Apartment Owners Association, claimed the issues faced by the home buyers were neither mitigated by Supertech Realtors nor the IRP, despite making representations.

The bench said the issues faced by homebuyers will be resolved and asked Govind Ji to make suggestions to the amicus curiae by September 8 and posted the matter for September 12.

The top court also pulled up Maharashtra Bank for opposing the appointment of a co-developer and said it needs to safeguard the interest of homebuyers as proceedings under the Insolvency and Bankruptcy Code (IBC).

"We have seen that this IRP business is creating problems," the bench remarked and gave liberty to all stakeholders to make suggestions to the amicus.

The top court directed Supertech Realtors to put the order of the court on its website for the knowledge of the general public.

Divan submitted at the time when insolvency proceedings were going on, real estate firm Bhutani Group had come forward to construct the project.

"Private settlement between parties cannot be approved. A committee can be a way forward and it can call for a proposal from different parties," the bench said.

On August 29, the top court appointed Jain as amicus curiae noting the complexity of the issue at hand.

"Having regard to the complexity of the issues sought to be raised and before expressing any opinion, we request Rajiv Jain, Adv, former Director of Intelligence Bureau and former Member of the National Human Rights Commission to assist us in this matter also and give his valuable opinion-cum-report," it had said.

Arora has challenged the August 13 order of the NCLAT which has cleared the way for insolvency proceedings against Supertech Realtors, the developer of the Supernova project.

The appellate tribunal upheld the previous order passed by the Delhi bench of the NCLT, which on June 12, last year directed the initiation of the Corporate Insolvency Resolution Process over a petition filed by Bank of Maharashtra, claiming default. PTI MNL MNL AMK AMK

Committee oversight of co-developer appointment urged to ensure transparent selection and protect homebuyers during insolvency proceedings. Supreme Court considered creating a committee to oversee bidding and appointment of a co-developer for completion of the stalled Supernova project, refused to approve a private settlement with Parmesh Construction Company, restrained the Interim Resolution Professional from progressing the process, and directed notices to solicit stakeholder suggestions and publication of the court order. The Court reviewed an amicus curiae report, invited stakeholder submissions on committee composition and the way forward, and emphasised that private settlements during insolvency proceedings under the Insolvency and Bankruptcy Code should not supplant a transparent selection process.