Case Law Details
Vishal Chelani & Ors. Vs Debashis Nanda (Supreme Court of India)
Distinction by resolution professional between homebuyers seeking remedies is artificial and hence unsustainable
Supreme Court held that distinction made by resolution professional with regard to class of home buyers who seeks remedies under RERA is artificial and amount to ‘hyper-classification’ and hence falls afoul of Article 14. Accordingly, such classification is unsustainable.
Facts- The appellants are home buyers, who had opted for allotment in a real estate project of the respondent company. Aggrieved by the delay in the completion of the project, the appellants approached the UPRERA which by its orders upheld this entitlement to refund amounts deposited by the, together with interest.
In the meantime, proceedings under the Insolvency and Bankruptcy Code, 2016 were initiated. In the course of proceedings after due consultations by the Committee of Creditors, a resolution plan was presented to the adjudicating authority. In that plan, a distinction was made between home buyers, who had opted or elected for other remedies such as i.e. applying before the RERA and having secured orders in their favor, and those who did not do so. Home buyers who did not approach authorities under RER Act were given the benefit of 50% better terms than that given to those who approached RERA or who were decree holders.
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