• Filing complaint in NCLT against builder

Dear Sir , 
Builder has delayed the property possession due to me by almost 10yrs. i was thinking of filiing case in NCLT against the said builder but i recently came to know about a recent judgement of supreme court where the Hon'ble court has stayed NCLT proceedings against builders brought by home buyers. 

Would like to know the ramifications and whether it is now feasible to take NCLT ? 
What are the other legal remedies available ? Value of my property ( including delayed interest ) is in excess of 1cr.
Asked 3 months ago in Property Law from Mumbai, Maharashtra
Religion: Hindu

Dear client, 

Till NCLT issue not cleared by SC, complain to consumer forum for compensation for delayed possession.

Yogendra Singh Rajawat
Advocate, Jaipur
9797 Answers
8 Consultations

4.6 on 5.0

You should immediately serve a legal notice and take them to the consumer court. Also pray for some interim relief. a plea can be filed in NCDRC directly only if the cost involved is more than Rs 1 crore otherwise, complainants begin at the district consumer forums.. 

Mohammed Mujeeb
Advocate, Hyderabad
7067 Answers
3 Consultations

4.5 on 5.0

Sir, 

The best place to file a case regarding a builder and buyer dispute is RERA. it is the most speedy and newly structured litigation process. NCLT is bigger than RERA so it would take up a lot of time.

RERA is more like a consumer court solely for builder and buyer disputes.  

Abhishek Sharma
Advocate, Chandigarh
79 Answers
1 Consultation

5.0 on 5.0

See it would be better if you file a consumer complaint in the matter and seek compensation and interest and refund along with compensation for mental agony and litigation charges.


Approach the national commission in the said matter.

Shubham Jhajharia
Advocate, Ahmedabad
15304 Answers
63 Consultations

5.0 on 5.0

file complaint against builder before RERA seek orders to direct builder to deliver possession within stipulated period 

 

in  alternative cancel agreement seek refund of money wth interest 

Ajay Sethi
Advocate, Mumbai
61302 Answers
3720 Consultations

5.0 on 5.0

File a complaint with Rera seeking refund with interest and compensation u/s 18 of Rera 


Btw there is no stay against NCLT proceedings against builder

That stay was given by SC in Jaypee Infratech case and later that stay was vacated and the matter was again revived by the NCLT

You being a home buyer are a financial creditor under the Insolvency and Bankruptcy Code and you can thus take out an application u/s 7 of that code for initiation of insolvency resolution process against the builder if you seek refund of your money

Simultaneously you can also approach Rera

 

Yusuf Rampurawala
Advocate, Mumbai
3883 Answers
16 Consultations

5.0 on 5.0

You can file a complaint against the builder in Consumer Court or RERA for deficiency in services and unfair trade practices adopted by the builder delayed possession for more 7 years at least.

Since the value of the property is in excess of Rs. 1 crore, the matter will go to National Consumer Dispute Redressal Commission, New Delhi.

Alternatively, Complaints can be filed under Sec. 31 of the Real Estate (Regulation and Development) Act 2016, either with the Real Estate Regulatory Authority or the adjudicating officer.

Before filing a complaint in court, you should send a notice to the builder.

You can also file a criminal complaint under the provisions of section 415 and 420 of the IPC (Indian Penal Code) for Cheating and fraud St your nearest police station.

 

Regards.

Siddharth Jain
Advocate, New Delhi
3847 Answers
42 Consultations

5.0 on 5.0

other remedies are consumer court and if rera is applicable you can approach rera. But rera is only applicable after may 2017 cases. NCLT is also a good option you need to go through the said judgement thoroughly before generalizing the judgement.

Prashant Nayak
Advocate, Mumbai
8291 Answers
11 Consultations

4.8 on 5.0

1. I am not sure for what grievances you were considering to file case before the NCLT .

2. The grievances you may have against he builder can best be redressed by filing a case before the Consumer forum which is equipped to award with enough damages and compensation along with refund of money with interest.

3. the dispute you have can no way be adjudicated by NCLT. So remove this thought from your mind and file case before the consumer forum, if you are so willing.

Devajyoti Barman
Advocate, Kolkata
16485 Answers
231 Consultations

5.0 on 5.0

1.You shall have to file a complaint case before the State Consumer Dispute Redressal Commission (if the claim is for more than Rs.20 lakhs) against the seller alleging deficiency in service and unfair business practice claiming refund of the amount paid by you with interest, damage and cost.

 

2. If the claim is for more than 1 Crore, you shall have to approach the National Consumer Dispute Redressal Commission  seeking relief.

Krishna Kishore Ganguly
Advocate, Kolkata
21758 Answers
564 Consultations

5.0 on 5.0

You have  remedy with RERA .

You can submit a complaint against the builder seeking compensation or penal interest for the period  of delay.

Alternately you can consumer  forum relief and remedy

T Kalaiselvan
Advocate, Vellore
51403 Answers
612 Consultations

5.0 on 5.0

In NCLT, you'll be only a operational creditor, not a secured creditor.

You'll he paid only after the debts of secured creditors are realised.

Siddharth Jain
Advocate, New Delhi
3847 Answers
42 Consultations

5.0 on 5.0

See in NCLT even if company is declared insolvent then also the funds are disbursed as per the Insolvency and bankruptcy code in your case the better relief would be with other two forums.

Shubham Jhajharia
Advocate, Ahmedabad
15304 Answers
63 Consultations

5.0 on 5.0

NCLT is for insolvency resolution of builder

You can approach NCLT no doubt, but you as a financial creditor, are a secured or unsecured creditor under IBC is still not clear

If your petition is admitted and the resolution process begins but ultimately fails then the builder's company will go into liquidation

In that event the first preference will be given to workers dues, then secured creditors and the remaining if any among other creditors 

Legislature has not clarified what is the position of a home buyer - whether he is a secured creditor or unsecured creditor

The resolution process itself will take 3 months and if it fails then liquidation process will begin which God knows how much time it would take

As compared to that Rera is quicker as within 6 months your complaint has to be disposed of and adjudicated by the court

Also the effect of admission of NCLT petition is staying all orders and proceedings which are pending against builder in other courts

So even though you can approach both rera and nclt simultaneously, but moment your nclt petition is admitted, any favorable Rera order that may have been passed in your favour, will be automatically stayed

So choice is yours

Yusuf Rampurawala
Advocate, Mumbai
3883 Answers
16 Consultations

5.0 on 5.0

You can obtain fastest results with RERA and not with NCLT 

 

 

Ajay Sethi
Advocate, Mumbai
61302 Answers
3720 Consultations

5.0 on 5.0

It is not a "cakewalk" and may not be easy for home buyers to recover their money from defaulting real estate players, even after becoming financial creditors under the Insolvency & Bankruptcy Code.

Under the Insolvency and Bankruptcy Code Amendment Ordinance, 2018, home buyers will get due representation in the committee of creditors (CoC) that takes a call on resolution proposals, making them an integral part of the decision making process. 

Home buyers would be able to invoke Section 7 of the IBC against errant developers. Section 7 allows financial creditors to file application seeking insolvency resolution process.

Even if one homebuyer moves the NCLT (National Company Law Tribunal), the company can go in for insolvency. That is the intention of bringing them into the creditors fold." 

However in practice despite existence of stringent laws the builders look for some loopholes to escape the liability.

 

 

 

 

T Kalaiselvan
Advocate, Vellore
51403 Answers
612 Consultations

5.0 on 5.0

You can also approach NCLT. But rera is faster then nclt. Both are good forums

Prashant Nayak
Advocate, Mumbai
8291 Answers
11 Consultations

4.8 on 5.0

1. You yourself has mentioned 'i recently came to know about a recent judgement of supreme court where the Hon'ble court has stayed NCLT proceedings against builders brought by home buyers'. 

 

2. If that be the case then why shall you approach the NCLT?

 

3. RERA has been enacted for solving the specific problems faced by the home buyers.

Krishna Kishore Ganguly
Advocate, Kolkata
21758 Answers
564 Consultations

5.0 on 5.0

Yes you can file a case before the NCLT being the financial creditor. 

Home buyer have been considered as financial creditors 

Anilesh Tewari
Advocate, New Delhi
15495 Answers
228 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer