Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | group housing project Insolvency and Bankruptcy Code |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Insolvency and Bankruptcy Code, 2016 (31 of 2016) |
Case Type | Special Leave Petition |
Court | Supreme Court of India |
Disposal Nature | Others |
Headnote | Insolvency and Bankruptcy Code, 2016: s.14 – Petitioners are home buyers in a group housing project – Possession of apartments were not handed as per the agreement – Petitioners filed consumer complaint before National Commission (NCDRC) – NCDRC directed refund of money with interest – Execution proceedings – First respondent challenged the order of NCDRC before High Court and stay was granted in favour of first respondent – Pending execution, proceedings were initiated against the first respondent before NCLT by operational creditor – Adjudicating Authority admitted s.9 petition following which the corporate insolvency resolution process was initiated and a moratorium was declared under s.14 of the IBC – This order of NCLT resulted in filing of special leave petition by certain other homebuyers with grievance that application filed for initiation of corporate insolvency against the first respondent was merely to stall the refund of the amount due to the homebuyers in terms of order of NCDRC – Petitioners lodged their claims before the Resolution Professional – CoC approved the Resolution Plan which was submitted by the consortium of homebuyers – Application was filed by the Resolution Professional for approval of the Resolution Plan before the Adjudicatory Authority and some objections were received – The proceedings are now pending before the Adjudicating Authority, awaiting its approval under s.31(1) of the IBC – If the petitioners have any objections to the Resolution Plan, they are to submit them before the Adjudicating Authority – NCLT is directed to ensure that the application for approval is disposed of expeditiously – Since the Resolution Plan is still to be approved by the Adjudicating Authority under the provisions of s.31(1) of the IBC, at this stage, it is held not appropriate to issue a direction to attach personalproperties of the promoters – After the Resolution Plan is approved under the provisions of s.31(1), consequences emanating from the statutory provision would ensue to the benefit of the home buyers – Further, since the moratorium declared in respect of the first respondent continues to operate under s.14 of the IBC, no new proceedings can be undertaken or pending ones continued against the Corporate Debtor – Petitioners would not be prevented by the moratorium under s.14 of the IBC from initiating proceedings against the promoters of the first respondent in relation to honoring the settlements reached before this Court – However, this Court cannot issue such a direction relying on a Resolution Plan which is still pending for approval before an Adjudicating Authority. |
Judge | Hon'ble Dr. Justice D.Y. Chandrachud |
Neutral Citation | 2021 INSC 460 |
Petitioner | Anjali Rathi And Others |
Respondent | Today Homes & Infrastructure Pvt. Ltd. And Others |
SCR | [2021] 9 S.C.R. 152 |
Judgement Date | 2021-09-08 |
Case Number | 12150 |
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