The RERA is to be read harmoniously with the Code | Home buyers under IBC | Definition of Financial Debt – Pioneer Urban Land and Infrastructure Limited & Anr. Vs. Union of India & Ors.-Supreme Court
August 5, 2019
This judgment covers: A. Background. B. IBC vis-à-vis RERA. C. The Article 14 Challenge (I): Discrimination. C.1 The Legislature’s right to experiment in matters economic. C.2 Allotee vs. Operational Creditor. C.3 Home buyers/allottees with other individual financial creditors like debenture holders and fixed deposit holders. C.4 Why are Home buyers not within “other creditors”? D. The Article 14 Challenge (II): Manifest arbitrariness; Article 19(1)(g) and Article 300A. D.1 The Code is a beneficial legislation. D.2 UNCITRAL Legislative Guide. E. Interpretation of Section 5(8)(f) of the Code. E.1 Meaning of Debt, Claim and Default. E.2 Disbursement and Time Value of Money under Section 5(8). E.3 Sub-clause (f) of Section 5(8) is residuary provision which is catch all in nature?. E.4 The expression “commercial effect” in Sub-clause (f) Section 5(8). E.5 The expression “means and includes” used in Section 5(8). E.6 Is Section 5(8)(f) to be construed noscitur a sociis with sub-clauses (a) to (e) and (g) to (i). E.7 The effect of a deeming fiction. E.8 Does an explanation enlarge the scope of the original section. F. Duty of NCLT in case of Allottee is himself a defaulter or a speculative investor and not a person who is genuinely interested in purchasing a flat/apartment. G. Timelines contained in the provisos to Section 7(5), Section 9(5) and Section 10(4) of the Code are all directory and not mandatory. H. Challenge to Section 21(6A) and 25A of the Code. I. Conclusion.