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LEGAL REMEDIES AVAILABLE WITH FLAT BUYERS: PROJECTS STUCK IN INSOLVENCY PROCEEDINGS
With Jaypee insolvency plea already admitted by NCDRC, and Amrapali in row, flat buyers who have invested their hard earned money in such projects are in a dilemma about what to do next. Sitting idle and waiting for the proceedings to complete is no the solution, but what should be done by flat buyers is to take recourse to appropriate legal remedies.
FIRST option is approaching NCDRC seeking the possession of flat or refund of money along with interest as the builder has already delayed the project and in pursuance of the judgment delivered in Supertech case in which NCDRC directed for immediate possession must be granted to flat buyers. In case NCDRC does not admit above option because of section 14 of Insolvency and Bankruptcy Code -2016, than the order of NCDRC , along with validity of sec 14 can be challenged in Hon'ble Supreme Court.
Second option flat buyers/associations can file a a petition before the Hon'ble Supreme Court challenging the validity of section 14 of Insolvency and Bankruptcy Code 2016, which deals with prohibition on any fresh legal proceedings against the corporate debtor in any court of law, tribunal etc and further staying the ongoing cases against the corporate debtor, Jaypee Infratech in present matter.
Filing of Criminal complaint ( FIR ) with ECONOMIC OFFENCE WING, which should be done without any delay against the culprits / promoters / directors of Jaypee infratech as done against the directors of Vigneshwara Builders. Things which flat buyers must understand is that the process of insolvency has been initiated and company is not yet declared insolvent. It is only when the revival plans for the company facing insolvency proceedings fail, that company will be declared insolvent.
In recent move aimed at protecting the interests of home buyers in view of recent developments in real estate matters related to players like Jaypee Infratech and Amrapali Group, the Insolvency & Bankruptcy Board of India (IBBI) has amended rules to mandate that any resolution plan for a company has to explicitly state how it has dealt with interests of all stakeholders. The revised rules will also ensure that that banks and other creditors do not get away by protecting their interests at the expense of others who are impacted by the action.
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