Upholding Constitutional Validity of IBC Amendment to include Home Allottee as “Financial Creditor” /Remedy under RERA/ CPA/ IBC are Independent:
Pioneer Urban Land and Infrastructure Limited & Anr. Vs. Union of India & Ors. [WRIT PETITION (CIVIL) NO. 43 OF 2019 dated 09/08/2019]. In the refereed case the full bench of the Hon’ble Supreme Court upheld the amendments made to deem allottees of real estate projects to be “financial creditors” so that they may trigger the Code, under Section 7 thereof, against the real estate developer. In addition, being financial creditors, they are entitled to be represented in the Committee of Creditors by authorised representatives.
The Court further held that the RERA and the IBC are two independent and alternative remedy available to the home allotees/ buyers and the provision of the RERA and the Code to be construed harmoniously.
The Court further held that in case of conflict between the RERA and the Code the latter will prevail. Besides the buyers may also approach to the Consumer Forum to ventilate their grievance simultaneously
The details ratio of the judgment referred can be visited at : https://sci.gov.in/supremecourt/2019/1348/1348_2019_5_1501_15816_Judgement_09-Aug-2019.pdf
