NCLAT Directs YG Estates To Hand Over Supertech Ecociti, 34 Pavilion Maintenance To RWAs In 30 Days

The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently directed YG Estates Facilities Management Pvt. Ltd. to hand over maintenance of Supertech's Ecociti and 34 Pavilion projects in Noida to their registered apartment owners' associations within 30 days.

A bench of Judicial Member Justice Ashok Bhushan and Technical Member Barun Mitra held that since 99 percent of the homebuyers had taken possession and the associations were duly registered under the Uttar Pradesh Apartment Act, maintenance must be transferred under Section 14(5).

The tribunal observed,

“Fact remains that 99% of the homebuyers have taken possession and registered Association has been formed, we are of the view that by virtue of statutory provisions of Section 14(5) as noted above the maintenance is required to be handed over to the applicant.”

The applications were filed by the Ecociti and 34 Pavilion apartment owners' associations in Supertech's insolvency proceedings.

The Ecociti association was registered on January 3, 2022. It informed the Tribunal that 99 percent of its 2,147 flats were occupied. The Noida Authority had written to Supertech directing transfer of maintenance.

In 34 Pavilion, the association's registration had been renewed on March 1, 2025. The Interim Resolution Professional stated that 99 percent of the 262 flats across four towers had been handed over to buyers.

YG Estates opposed the pleas. It argued that a completion certificate, and not merely an occupancy certificate, was required before maintenance could be transferred. It also questioned the validity of the associations' registration and raised objections under Rule 55 of the 2010 Rules.

The Tribunal rejected the objections. It held that Rule 55 relates to execution of deeds and does not bar filing of such applications. It further held that a pending challenge to registration does not take away the status of a registered association.

Relying on Section 14(5), the Bench said that once an association is formed, management of common areas is deemed to transfer from the promoter to the association.

The Interim Resolution Professional supported the transfer and said it would be just and proper to remove YG Estates as the maintenance agency.

Allowing both applications, the tribunal directed YG Estates to complete the handover within 30 days under the supervision of the Interim Resolution Professional.

It clarified that YG Estates is free to take steps in accordance with its contract to recover any outstanding dues