Homebuyers, whether they have an order or Decree from the RERA or who do not have any Decree or order from RERA, belong to same category of Allottees and are required to comply with 2nd Proviso to Section 7(1) of IBC and will not be treated as Decree Holder – Shri Rahul Gyanchandani and Ors. Vs. Parsvnath Landmark Developers Pvt. Ltd. – NCLAT New Delhi

In this important judgment, NCLAT clarified that:
(i) The Homebuyers cannot be said to go out of the definition of allottees merely because they have an order in their favour by RERA and the Homebuyers’ submission that they should be treated in a different category, i.e., category of Decree Holder and are not required to comply with 2nd Proviso to Section 7(1) of IBC, cannot be accepted.
(ii) The Homebuyers even after order of the RERA, directing for refund by the Corporate Debtor, continued to be allottees and they have filed Section 7 Application as Financial Creditor of the Corporate Debtor. They are mandatorily required to comply with 2nd Proviso to Section 7(1) of IBC.
(iii) Homebuyers, whether they have an order or Decree from the RERA or who do not have any Decree or order from RERA, belong to same category of allottees and no distinction can be made on the said ground.

Homebuyers, whether they have an order or Decree from the RERA or who do not have any Decree or order from RERA, belong to same category of Allottees and are required to comply with 2nd Proviso to Section 7(1) of IBC and will not be treated as Decree Holder – Shri Rahul Gyanchandani and Ors. Vs. Parsvnath Landmark Developers Pvt. Ltd. – NCLAT New Delhi Read Post »