C&M acted for the homebuyers in the case
Chandhiok & Mahajan, Advocates and Solicitors, led by Pooja Mahajan and assisted by Arveena Sharma and Shreya Mahalwar successfully represented the homebuyers of Akme Raaga Project in the appeal before the Hon’ble NCLAT titled Anjani Kumar Prashar (Suspended Director of Grandstar Realty Pvt. Limited) v. Manab Datta & Ors, Company Appeal (AT)(Insol) No. 1366 of 2023. The Hon’ble NCLAT upheld the order passed by the NCLT, admitting the corporate debtor to insolvency process basis Section 7 application filed by the homebuyers.
In this landmark judgement, the Hon’ble NCLAT held that an auction purchaser, that had taken over a real estate project under SARFAESI from the original developer, cannot escape rigours of the IBC to defeat the rights of the homebuyers and that such auction purchaser will be considered as a ‘corporate debtor’ to the allottees. The NCLAT noted that the rights of the allottees did not undergo any change in the auction process and by purchasing the assets in SARFAESI, the purchaser also took over the obligations of the original developer towards the allottees. NCLAT further held that filing of the claims by the allottees in the CIRP of original developer cannot preclude them from initiating Section 7 proceedings against the auction purchaser for its default in construction and delivery of the units.
Read here the complete judgement.