2021 (3) TMI 1358 - Tri - Insolvency and Bankruptcy

Tribunal Orders Corporate Debtor to Disclose Real Estate Project Allottees Info

The Tribunal directed the Corporate Debtor to provide specific information on Allottees of a Real Estate Project, emphasizing compliance with previous ... Seeking directions to the Corporate Debtor to provide relevant information with respect to the details of Allottees concerning Corporate Debtor's Real Estate Project - HELD THAT:- It is evident from the judgement of the Hon'ble Supreme Court in Manish Kumar [2021 (1) TMI 802 - SUPREME COURT] that nowhere in the said judgement the Corporate Debtor has been permitted to withhold the relevant information from the allottees, particularly when the same is otherwise directed to be published on the Website of the Company in terms of RERA Regulation. However, in the case before us admittedly project of the Corporate Debtor is not registered with RERA Authorities, therefore, as of now, there is no feasible way available to the Applicant-Financial Creditors to comply with the requirement of allottees to support his application under amended Section 7 of the IBC. It is further noted that admittedly, in the present case, no Association of the allottees is stated to have been formed as well through which the Applicant could make any efforts for getting the information from the Corporate Debtor. The home buyers in the given situation cannot be permitted to be left in lurch and at the mercy of such builders who are violating Law relating to the Real Estate Regulating Authority in the first instance and taking shelter of the same violation and denying the relevant information to the allottees - the Corporate Debtor are directed to provide all information - the compliance of these directions shall be made by the Corporate Debtor in 15 days' time, failing which appropriate punitive action may be initiated against the Corporate Debtor. Application disposed off. Issues:1. Directions sought by applicants for information on Allottees of Real Estate Project.2. Compliance with directions from previous orders and NCLAT judgments.3. Legal obligations of Corporate Debtor regarding providing information.4. Arguments regarding RERA registration and obligations.5. Interpretation of judgments and rights of Financial Creditors.6. Formation of Association of Allottees and access to information.7. Compliance with directions and consequences of non-compliance.Issue 1: Directions sought by applicants for information on Allottees of Real Estate ProjectThe applicants requested directions for the Corporate Debtor to provide information on Allottees of a Real Estate Project named Parsvnath City Centre, Bhiwadi. The Tribunal had previously directed the Corporate Debtor to furnish details of Allottees based on a judgment by Hon'ble NCLAT.Issue 2: Compliance with directions from previous orders and NCLAT judgmentsThe Corporate Debtor was directed to provide information about Allottees as per previous orders and NCLAT judgments. Compliance with these directions was emphasized, and the Tribunal reviewed the information provided by the Corporate Debtor to ensure adherence to the directives.Issue 3: Legal obligations of Corporate Debtor regarding providing informationThe Corporate Debtor argued that it was not obligated to provide information to Financial Creditors based on a judgment by the Hon'ble Supreme Court. They contended that since the project was not registered with RERA, they were not required to disclose certain details to the applicants.Issue 4: Arguments regarding RERA registration and obligationsThe Financial Creditors countered the Corporate Debtor's arguments by highlighting the importance of RERA registration and the obligations of the Corporate Debtor to provide necessary information. They emphasized the need for transparency and compliance with regulations.Issue 5: Interpretation of judgments and rights of Financial CreditorsThe Tribunal analyzed the judgments, including the Manish Kumar case, to determine the rights of Financial Creditors and the obligations of the Corporate Debtor. It concluded that withholding relevant information from Allottees was not permitted, especially when required by RERA regulations.Issue 6: Formation of Association of Allottees and access to informationThe absence of an Association of Allottees hindered the Financial Creditors' ability to obtain information from the Corporate Debtor. The Tribunal noted the significance of such associations in facilitating access to relevant details for supporting applications under the IBC.Issue 7: Compliance with directions and consequences of non-complianceIn light of the findings, the Tribunal reiterated the directive for the Corporate Debtor to provide specific information about Allottees within a specified timeframe. Non-compliance could result in punitive action against the Corporate Debtor, emphasizing the importance of adhering to the Tribunal's orders.This detailed analysis covers the various issues addressed in the judgment, highlighting the legal interpretations, obligations, and consequences for the parties involved.