The National Company Law Appellate Tribunal (NCLAT) has rejected the petition of Ram Kishore Arora, former promoter of the debt -ridden realty firm Supertech. In this, he challenged the personal insolvency proceedings launched against himself.
Arora challenged an order from the Delhi Peeth of the National Company Law Tribunal (NCLT), which in February 2025 appointed an interim solution professional (IRP) along with directing Arora to initiate personal insolvency against Arora on a petition filed by IFCI in February 2025.
NCLT did not reveal personal insolvency action
A two -member bench of the Appellate Tribunal NCLAT said that individual insolvency action cannot be defended based on another insolvency action against Supertech under Section Seven of the Insolvency and Raboling Disability Code (IBC).
The matter is also under consideration in HC
Arora’s lawyer said that the insolvency proceedings initiated against Supertech Limited under Section Seven are currently under consideration before the Supreme Court. In this case, the Supreme Court had asked the promoters and third parties of Supertech to present a settlement scheme on 21 February 2025, and the process is already pending before the Supreme Court.
However, NCLAT dismissed the argument, saying, “We believe that personal insolvency action cannot be defended under Section Seven.”