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 the appointment of an interim resolution professional and the company was placed under moratorium...

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 the Appellate Tribunal shall consist of a Chairperson and not less than two whole time Members of which one shall...

[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," Presiding Member Prem Narain noted. Recognizing the plight of homebuyers who had invested Rs. 70 lakh to 1...

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 all projects, including those that had expired long back. "Surprisingly, the circular may even give...

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 Justice Satish Kumar Sharma. The impugned order dated May 13, 2020 grants across the board extension of...

COVID-19 And Relief Under RERA- A Critical Analysis

The pandemic COVID-19 outbreak has created a huge impact on the economy. Which in turn pushed sentiment in real estate to its all-time lowest level. It has affected not only the residential and but also the commercial real estate sector. The residential sector has been facing a lower demand, which has now put the developers in dilemma regarding taking a risk by launching any new projects. Since because of various factors such as shortage of material and labour, construction for on-going...

Real Estate Development - Need To Simplify Legal Procedures

More often, several real estate development projects are stalled at a very primary stage, may be at the stage of procurement of land, or in process of seeking various permissions under different statutes. The unhappiness amongst the real-estate developers as regards the complexities in the procedures and in getting the required permissions, appears quite genuine. It is noticed that many litigation proceedings, at least by or against the respective State Governments arise due to delay in...

Industrial Units And Buildings That Are Part Of Such Units Won't Come Under RERA: Maharashtra RERA [Read Order]

The Maharashtra Real Estate Regulatory Authority last month held that Industrial Units or buildings part of such units will not come under Real Estate (Regulation and Development) Act, 2016.Member BD Kapadnis was hearing a complaint filed by Techno Dirive Engineer Pvt Ltd contending that they had booked two units in the Renaissance Industrial Smart City project by Renaissance Indus Infra Pvt Ltd, but they failed to hand over possession of the said units on the agreed date of May 31, 2015.The...

Remedies Available Under Consumer Protection Act And RERA Are Concurrent: Delhi HC [Delhi HC]

The Delhi High Court on Wednesday reiterated that remedies available to home buyers under the Consumer Protection Act, 1986 (CPA) and Real Estate (Development and Regulation) Act, 2016 (RERA) are concurrent.BackgroundIn the petition titled "M/s M3M India Pvt. Ltd. & Anr. v. Dr. Dinesh Sharma & Anr." along with a batch of similar petitions, Justice Prateek Jalan was faced with the question whether proceedings under the CPA could be commenced by home buyers against developers, after the...

RERA Prevails Over Companies Act; Winding Up Order Will Not Bar RERA Proceedings : Rajasthan Authority [Read Order]

The Rajasthan Real Estate Regulatory Authority has held that winding up order under Section 279 of the Companies Act 2013 will not bar proceedings under Real Estate (Regulation and Development) Act 2016.This was held by the Authority while dismissing an application filed by the builder seeking stay of proceedings on the ground that the Delhi High Court had appointed a provisional liquidator in respect of the builder-company, while the proceedings under RERA were pending.The builder cited Section...

RERA Does Not Bar Homebuyers' Complaint Under Consumer Protection Act Against Builder/Developer: NCDRC [Read Order]

Both, the Consumer Protection Act, 1986 and the Real Estate (Regulation and Development) Act, 2016 are supplemental to each other and there is no provision in the Consumer Protection Act which is inconsistent with the provisions of RERA.