NCLAT Upholds Insolvency Proceedings Against Supertech's Ex-Promoter

The National Company Law Appellate Tribunal (NCLAT) dismissed an appeal by Supertech's former promoter Ram Kishor Arora regarding personal insolvency proceedings. These proceedings, initiated by IFCI, are separate from those against Supertech under Section 7 of the IBC. Arora's settlement plans remain pending before the Supreme Court.

The National Company Law Appellate Tribunal (NCLAT) has upheld the initiation of personal insolvency proceedings against Ram Kishor Arora, the former promoter of debt-laden real estate firm Supertech, dismissing his appeal.

The dismissal follows an order from the Delhi bench of the National Company Law Tribunal in February 2025, demanding personal insolvency proceedings against Arora on a plea filed by the Industrial Finance Corporation of India (IFCI). While Arora argued that the ongoing insolvency proceedings against Supertech should impact his case, NCLAT clarified that the liabilities of a personal guarantor and corporate debtor to lenders could be pursued separately.

During hearings, Arora's legal representatives highlighted concurrent insolvency actions against Supertech, pending before the Supreme Court, and their efforts to negotiate a settlement plan. Despite this, the NCLAT maintained its stance, emphasizing that lenders hold the right to pursue action simultaneously against both corporate and personal debts.

(With inputs from agencies.)