Inappropriate To Entertain Art. 32 Plea By Homebuyers Against Developers: Supreme Courts Points To Provisions In CPA, RERA, IBC, Criminal Law

The Supreme Court on Thursday declared that proceedings under Article 32 of the Constitution by a purchaser, seeking relief in respect of a real estate project, cannot be entertained. The bench of Justices D. Y. Chandrachud and M. R. Shah was considering a writ petition by one of the home-buyers in respect of a real estate project called "Sushant Megapolis" in Bulandshahar. The primary...

Important Supreme Court Judgments: November 2020

The Supreme Court of India has pronounced numerous judgments in the month of November, 2020. In this write-up, the important pronouncements are briefly discussed. Arnab Manoranjan Goswami v. State of Maharashtra, Criminal Appeal No. 742 of 2020 (Decidedon 27/11/2020). A Bench of Justices Dr DY Chandrachud and Indira Banerjee summarized the factors which the High Courts must take into account while considering an application for the grant of bail under Article 226, which are, the...

RERA Does Not Bar Consumer Fora From Entertaining Complaints By Allottee, Reiterates Supreme Court

The Supreme Court has reiterated that Section 79 of the RERA Act does not bar the Consumer fora from entertaining complaint on behalf of an allottee.In this case, the issue before the Delhi High Court was whether the proceedings under the Consumer Protection Act, 1986 can be commenced by home buyers (or allottees of properties in proposed real estate development projects) against...

Entitlement Of Homebuyer Starts From Date Of Agreement And Not RERA Registration: Supreme Court [Read Judgment]

The Supreme Court has held that period for allotment of flat to a homebuyer has to be reckoned from the date of the buyer agreement and not from the date of the registration of the project under the Real Estate Regulation and Development Act (RERA Act).A division bench comprising Justices UU Lalit and Vineet Saran made this observation in the judgment in the case M/s Imperia Structures Ltd...

Relief Under RERA In Rajasthan– Real Or Illusory

After the enactment and implementation of the Real Estate (Regulation and Development) Act, 2016, the stakeholders in the real estate sector in Rajasthan have not been able to reap the benefits of the Act. Various rights conferred on both the promoters and buyers still remain on paper and very little progress can be seen on the ground in the working of the Act. The Real Estate Act of 2016 was enacted by the Parliament at the time when several issues like inordinate delay in completion...

Threshold Requirement Brought So That Other Homebuyers & Creditors Are Not Hurt: Centre Defends IBC Amendment Act 2020

The Supreme Court on Thursday heard the Centre in a batch of petitions challenging the constitutional validity of conditions introduced by the Insolvency and Bankruptcy Code (Amendment) Act, 2020, on the homebuyers' right to file insolvency petitions against defaulting builders. A Bench of Justices R. F. Nariman, Navin Sinha and K. M. Joseph heard arguments advanced by Additional...

Home Buyers Cannot Invoke Insolvency Proceedings For Recovery Of RERA Award: NCLAT [Read Order]

The National Company Law Appellate Tribunal (NCLAT) allowed an appeal filed by Sushil Ansal, former Director and shareholder of Ansal Properties and Infrastructure Limited (Ansals) setting aside the National Company Law Tribunal (NCLT), Delhi bench March 17 order for the initiation of insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). NCLT had allowed...

Conflicting Views Of NCLAT On Rights Of A Decree Holder Under The Insolvency And Bankruptcy Code, 2016

The National Company Law Appellate Tribunal (NCLAT) very recently on 14.8.2020 ,in the case of Sushil Ansal v Ashok Tripathi (Sushil Ansal) seems to dilute the interests of Decree Holders under IBC. The said judgement held that a Decree Holder cannot be classified as a Financial Creditor for the purpose of initiating Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (Code). NCLAT was seized of the question while dealing with a case of an...

Gujarat HC Urges State To Make Appointments To RERA Appellate Tribunal At The Earliest [Read Order]

The Gujarat High Court on Thursday urged the State Government to expedite the process of appointing members as well as the Chairperson, to the Gujarat Real Estate Appellate Tribunal. The order was passed in a PIL filed by one Nipun Singhvi, seeking a declaration that the constitution of the Appellate Tribunal is corum non judice. Section 45 of the RERA Act prescribes that...

[Inordinate Delay In Giving Possession] NCDRC Directs Gurgaon Based Real Estate Developer To Refund 12 Crore To Homebuyers [Read Orders]

The National Consumer Disputes Redressal Commission on Monday directed Gurgaon based developer, Three C Shelters Pvt. Ltd. to refund approximately Rs. 12 crore to homebuyers, in view of "inordinate delay" in giving possession at its Greenopolis Project in Gurgaon. "In these complaint cases, the possession was due in 2015-2016, however, even the construction is not complete,"...

Punjab & Haryana HC Stays Circular Issued By RERA, Punjab Extending Validity Of All Registered Real Estate Projects By Six Months [Read Order]

The Punjab and Haryana High Court on Tuesday stayed the operation of a "palpably wrong" circular issued by the Real Estate Regulatory Authority (RERA), Punjab, extending validity of all registered real estate projects by six months, due to the Covid crisis. The bench of Justice Rajan Gupta and Justice Karamjit Singh was "surprised" that the RERA had provided blanket extension to...

Rajasthan HC Issues Notice On Plea Challenging RERA Extension To Real Estate Projects

The Jaipur Bench of the Rajasthan High Court on Wednesday issued notice on a PIL challenging an order passed Rajasthan Real Estate Regulation Authority granting an "across board" 12-months extension for completion of registered real estate projects, due to the Covid-19 lockdown situation. The notice has been issued by a division bench comprised by Chief Justice Indrajit Mahanty and...