Real Estate Appellate Tribunal (REAT) can continue proceedings during CIRP and pass order against Corporate Debtor during moratorium | It is incumbent upon IRP to find out and follow all pending proceedings against Corporate Debtor | Claim filed after order of RERA cannot be said to be a belated claim barred by limitation – Mysore Petro Chemicals Ltd. Vs. Mrs. Vandana Garg, The RP of Raghuleela Builders Pvt. Ltd. – NCLT Mumbai Bench
Hon’ble NCLT Mumbai Bench held that:
(i) The claim of the Applicant cannot be said to be a belated claim barred by the limitation as the Applicant filed the appeal before the MahaRERA much prior to the initiation of CIRP proceedings.
(ii) The Corporate Debtor (or the IRP) were on the one hand duty bound to appear before MahaRERA or/otherwise is bound by the judgment rendered by Hon’ble MahaRERA.
(iii) It was incumbent upon the IRP to find out and follow all the pending proceedings against the Corporate Debtor.
(iv) In view of the settled proposition of law that the purpose of moratorium is to secure the assets of the Corporate Debtor and the term “proceedings” not preceded by word “all” makes it abundantly clear that Section 14(1)(a) would not apply blindly without appreciating the facts to “all” the proceedings.
(v) In addition, the directions of the Hon’ble Apex Court in Pioneer Urban Land and Infrastructure Ltd. & Anr. v. UoI & Ors. (2019) ibclaw.in 13 SC holding that the RERA Act has to be read harmoniously with IBC also deserve to be appreciated and taken notice of.