Now the said amendment is stayed by supreme Court and you can file complaints in nclt till SC decides it
Effect of ongoing case in NCLT due to amendment IBC (amended) 2019
Dear sir Background of my case 1 I had booked a flat in aliens space station -1 in hyderabad in 2009. 2 The agreement was made and i had payed rs 6 lakhs as advance registration is yet to be done. 3 SBI had sanctioned rs 26 lakhs and disbursed only 12 lakhs during agreement balance was to be released based on pogress of construction. 4 The flat was to be handed over in dec 2011 and till date only 20%is complete. 5 The developer is neither refunding the money nor handing over the flat 6 My lawyer had sent alegal notice two yrs back and filed a case in NCLT. 7. My principle money which I had paid has been refunded by the developer through the court but intrest/ compensation is partially due though we are asking for 12 % intrest as compensation but they have given 7% and are not willing to pay more. Clarification requested for the following Now in dec 2019 the amendment of Insolvency and bankrupsy act has come into force and my lawyer says that we need 10% or 100 petitioners to continue with the case and that too within a month. we do not have so many petitioners so what are our options to continue with the nclt or look for other option such as consumer courts, please advise question - what are my options, consumer court or anything else regards sharad
Asked 4 years ago in Property Law
Religion: Hindu
11 Answers
In view of amendment proceedings cannot continue with NCLT unless 10 per ce t continue with case or 100 flat owners
2) if case is dismissed file complaint against builder before consumer forum and seek orders to direct builder to refund your money with interest or file complaint before RERA
You can file a complaint case before the local District Consumer Dispute Redressal Forum alleging deficiency in service and unfair business practice against the developer claiming the balance interest amount, damage and cost.
After the amendment of insolvency and bankruptcy code you have the right to complain to nclt to declare that company incident if it is already in process which is not evident in your question then and you have the other option to file your complaint with state consumer Commission for refund of entire amount you get along with me interest compensation and legal charges but in case insolvency proceeding is started you need to find out if you have made your claim to the resolution professional appointed to become party for the amount you paid .
for any further question you need to speak to me in this regard
Please remember to rate this answer if you like it.
Dear Sir,
You have not specified the builder group in your question. That would certainly play an important role in deciding the course of action . You can also seek phone consultation from the lawyers of this group Kanoon.com and when a consultation session happens we get out more things which are helpful to you in determining the course of action
Amendment has prospective effect, only those applications which are not yet admitted by NCLT will effect amendment.
And NCLT will have to maintain status quo with respect to the applications already filed by homebuyers, investors against defaulting developers till next order or SC.
Consumer remedy barred by limitation
In my opinion file complaint before consumer court and claim your money along with interest.
Your lawyer is right in his opinion.
As per the new amendment to the act:
- The Ordinance amends this to provide minimum thresholds for certain classes of financial creditors for initiating the insolvency resolution process. In case of real estate projects, if an allottee (person to whom a plot, apartment, or building has been allotted or sold) wants to initiate the resolution process, the application should be filed jointly by at least 100 allottees of the same real estate project, or 10% of the total allottees under that project, whichever is less.
- For other financial creditors, where the debt owed is either: (i) in the form of securities or deposits, or (ii) to a class of creditors, the application should be filed jointly by at least 100 creditors in the same class, or 10% of the total number of such creditors in the same class, whichever is less.
Thus if it is not possible to continue with the NCLT, you may withdraw and approach consumer forum for relief
You should file case under consumer forum to claim compensation or you can accept the builder is offering the compensation.
In a recent decision of the Supreme Court retrospective petitions filed before NCLT by individual homebuyers have been exempted from IBC amendment.
You can file a case in the rera tribunal. But the cases were already pending would not be affected by this amendment in 2019. The amendment would apply to future cases.
