Can allottees challenge the refund order of RERA through a writ and seek allotment after commencement of CIRP against the Builder? – Mrs Manju Rakesh Vs. State of UP and Ors. – Allahabad High Court
The Hon’ble Allahabad High Court held that:
(i) The order directs the refund of the amount cannot be entertained at this belated stage in a writ petition, bypassing the statutory alternative remedy of an appeal under the Real Estate (Regulation and Development) Act, 2016.
(ii) An unjustified interference with the proceedings initiated under the Insolvency and Bankruptcy Code, 2016, breaches the discipline of law.
(iii) The Insolvency and Bankruptcy Code, being a complete Code in itself, with sufficient checks and balances remedial avenues and appeals, any interference by the High Court in exercise of its extraordinary powers under Article 226 of the Constitution, which may have the effect interdicting the CIRP, would not be permissible as a matter of course.