Tejas J. Shah & Amisha T. Shah & Ors. Vs Mantri Technology Constellations Pvt Ltd (Supreme Court of India)
The Supreme Court considered civil appeals challenging the order dated 20.01.2025 of the National Consumer Disputes Redressal Commission (NCDRC), which had rejected applications seeking continuation of Consumer Complaint No. 13 of 2023 against Respondent Nos. 2 to 7 after a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC) was imposed against Respondent No. 1, and had adjourned the consumer complaint sine die.
The appellants were homebuyers who had booked apartments in the “Mantri Manyata Energia” project being developed by Respondent No. 1. Construction agreements and agreements for sale were executed in 2016, with possession agreed to be delivered on or before 31.12.2018. According to the appellants, possession was not delivered despite substantial payment of the sale consideration and repeated assurances. Consequently, the appellants, along with other homebuyers, instituted a consumer complaint before the NCDRC alleging deficiency in service and unfair trade practices against Respondent Nos. 1 to 7.
During the pendency of the complaint, the National Company Law Tribunal, Bengaluru Bench admitted an application under Section 9 of the IBC against Respondent No. 1 on 23.08.2024, initiating the Corporate Insolvency Resolution Process (CIRP) and imposing a moratorium under Section 14 of the IBC. The appellants thereafter filed interlocutory applications requesting that, notwithstanding the moratorium against Respondent No. 1, the consumer complaint should continue against Respondent Nos. 2 to 7. The NCDRC rejected the applications, holding that liability of the remaining respondents could not be independently examined and that the proceedings could not be split because the agreements had been executed with Respondent No. 1.
