TaxTMI 
TaxTMI 
2021 (9) TMI 948
X X X X Extracts X X X X
X X X X Extracts X X X X
....d the first respondent. Clause 21 of the agreements envisaged that possession of the apartments would be delivered within a period of thirty-six months, which in almost all cases was to be in 2014. 2. The grievance of the petitioners is that the project was abandoned by the developer. As a result, they instituted proceedings^1 before the National Consumer Dispute Redressal Commission^2 seeking refund of their moneys with interest. On 12 July 2018, the NCDRC allowed their claim by directing the first respondent to refund the principal amount paid by the petitioners together with 12 per cent interest from the date of deposit along with costs within four weeks. There was a provision in the order for interest being enhanced to 14 per cent if the amount was not paid within the stipulated period. This order of the NCDRC has attained finality. 3. Execution proceedings^3 under Sections 25 and 27 of the Consumer Protection Act 1986^4 were instituted by the petitioners. The NCDRC issued notice on 7 September 2018. In the meantime, certain orders were passed by the NCDRC on 23 October 2018 in separate execution proceedings pertaining to other home buyers in the same housing project. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ited purpose of challenging the final direction of the NCDRC, i.e., that order of custody of the Managing Director of the first respondent and attachment of properties of the first respondent shall only be given effect to once the Delhi High Court decides the first respondent's petition. 6. During the pendency of the proceedings before this Court, arising out of the order of the Delhi High Court, certain developments took place. On 1 July 2019, notice was issued in SLP (C) No 12150 of 2019 and the order of the Delhi High Court was stayed. On 11 September 2019, the Court was informed that seven petitioners have settled their dispute and that a settlement with the others was likely. 7. In the meantime, on 31 October 2019, proceedings were initiated against the first respondent before the National Company Law Tribunal "NCLT"/"Adjudicating Authority" under Section 9 of the Insolvency and Bankruptcy Code 2016 (IBC) by an operational creditor. The Adjudicating Authority admitted the petition, following which the corporate insolvency resolution process (CIRP) was initiated and a moratorium was declared under Section 14 of the IBC. The specific direction of the NCLT was as follows: ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....jects. 9. In view of these developments, by an order dated 8 July 2021, this Court directed that a meeting of the Committee of Creditors be convened within a period of two weeks so that a final decision could be taken on whether any of the Resolution Plans are acceptable to it. The CoC consists only of representatives of the home buyers, no financial institutions being involved. The Court has been apprised, by Mr Himanshu Satija, counsel appearing on behalf of the RP, that by a vote of 96.93 per cent, the CoC approved the Resolution Plan which was submitted by the consortium of home buyers. On 21 August 2021, an application was filed by the RP for approval of the Resolution Plan before the Adjudicating Authority and some objections have been received. The Adjudicating Authority is yet to decide on this application for approval. 10. Mr. Pawanshree Agarwal appears on behalf of the petitioners. Mr, Himanshu Satija appears for the RP. Mr, Manoj Yadav appears for second to sixth respondents, a group of home buyers. Mr. Akshay Srivastava and Mr, Ayush Sharma have intervened on behalf of other home buyers. 11 Mr. Pawanshree Agarwal, counsel appearing on behalf of the petitioners ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Authority, awaiting its approval under Section 31(1) of the under the IBC. If the petitioners have any objections to the Resolution Plan, they are to submit them before the Adjudicating Authority. We direct the NCLT to ensure that the application for approval is disposed of expeditiously and preferably within a period of six weeks form the date of receipt of a certified copy of this order. 13. Counsel for the petitioners urged that this Court should at the present stage direct that the personal properties of the promoters be attached in view of the provisions contained in the Resolution Plan which have been extracted earlier. The Resolution Plan is still to be approved by the Adjudicating Authority under the provisions of Section 31(1) of the IBC. Hence, at this stage, when the Resolution Plan awaits approval, it would not be appropriate for this Court to issue a direction of that nature. After the Resolution Plan is approved under the provisions of Section 31(1), consequences emanating from the statutory provision would ensue to the benefit of the home buyers. Hence, we have already directed that the NCLT shall dispose of the approval application filed on 21 August 2021, withi....