Homebuyers can now be comfortable, as the Hon’ble Supreme Court of India has affirmed the status of financial creditors of the Builder Company in one of its key judgments. As a consequence of the same, insolvency proceedings against many building companies are clear.
In recent developments, “Today Homes Noida Private Limited” has become bankrupt, as directed by the Hon’ble National Company Law Tribunal, New Delhi (NCLT) to set aside its order dated 20.08.2019. In that situation, the aggrieved home buyers moved the Hon’ble NCLT because the project had been postponed beyond a reasonable period of time. However, after acknowledging the delay, intimidation, and inability of the builder to complete the project, the Hon’ble NCLT initiated the Corporate Insolvency Resolution Process (CIRP) against the Builder Company, directing the Interim Resolution Professional (IRP) to invite claims from the creditors of the Company.
The IRP has already invited all financial and operational creditors of the Company, including home buyers, to make public announcements via newspapers and online media, which must be submitted within a span of 14 days, As a matter of course, the IRP will now form the Creditors ‘ Committee of the Company, Including the largest stakeholder of both the Financial and the Operational Creditors, who will be part of the major decisions taken by the Corporation. The IRP will be responsible for all the transactions and, after the settlement of the claims, will agree on the net worth of the company, which will either be taken over by some other entity by paying off all the creditors of the company or by selling off the assets of the company for the purpose of resolving all the claims.
Nevertheless, as a matter of law, lawsuits may be made before the settlement process is completed, but in the same situation, the claimant cannot become a member of the COC without filing the petition. Therefore, it is poignant to note herein that only creditors who file their claims will be able to resolve their claims and therefore the hour’s need is to file their claims with immediate effect.
How do I file a Claim?
You must either be a Financial Creditor (including Homebuyers) or an Operational Creditor of the Company for the purpose of filing a claim. For a Financial Creditor who is a Homebuyers Form CA (with a declaration in a properly notarized format) along with all necessary payment papers, the proof must be submitted before the IRP, while Form C is required for other financial creditors. For a Financial Creditor who is a Homebuyers Form CA (with a declaration in a properly notarized format) along with all necessary payment papers, proof must be submitted before the IRP, while Form C is required for other financial creditors and Form B will be filed with the Operational Creditors.
Home Buyers step by step method for filing claims.
- Collect all the proofs of payment for the estimation of the claim. The argument will be measured along with the interest paid by the builder for the late payment of any payment made by the home buyer to the builder.
- The specified FORM CA format must be submitted with all the information of the home buyer and the unit purchased from the seller, together with the estimate of the claims.
- All the records that support your claim, as well as the fact that you are the company’s financial creditor with documentation; have to be added to the form. The records should include for example the Builder Buyers agreement, the loan note, the payment vouchers, the account statements issued by the Building Authority (Owner Builder) and the bank statement indicating payments made to the Builder. In the case of a loan, a tripartite agreement should also be given to the Builder.
- The copy should also be annexed with PAN Card and Adhaar Card.
- You will attest FORM CA from any notary in your final step. If the house buyer is overseas, the FORM CA of the Indian Embassy of the country of residence should be properly notarially registered.
- The request must be submitted before the IRP at the available website or e-mail address in a scanned format after the FORM has been notarized and the records are attached.
Disclaimer- The above article is for educational purpose, It is expected that readers will take expert advice before relying on this article.