NCLT is known by national company law tribunal, which was constituted on June 1, 2016 under company’s act 2013. NCLT is empowered with authorities regarding all proceeding such as arbitration, compromise, reconstructing and winding up of a company. It also plays major role in insolvency resolution process of companies and limited liability partnership under insolvency and bankruptcy code, 2016. NCLT is considered apex in all matters regarding companies because if any action has been taken by NCLT then no criminal court will have a right to jurisdiction against the action which has already taken by NCLT.
The amendment which has made in Insolvency and Bankruptcy Code (IBC) 2016. That amendment came up with minimum threshold limit to filing the application the case against the default developers with NCLT. The limit is which has set according to insolvency and bankruptcy code 2016. Supreme Court brought out relief to aggrieved homebuyer by issuing petition to government of India against the amendment of insolvency and bankruptcy code 2016. Homebuyer argued for an amendment because this amendment has brought down limit, either corporate insolvency resolution process (CIRP) application can be filed jointly by 100 allottees or 10% of the total number allottees under same real estate project, It has ensured by ordinance amending section 7 of IBC,2016.
ALTERNATIVE RELIEF FOR INDIVIDUAL HOMEBUYERS
However, this amendment proofed very harsh on the pocket of homebuyer who already paid the amount for the home which supposed to get it. An individual shouldn’t discourage the amendment until the other forum or NCLT by himself not take any step. Now what a normal homebuyer can do when the topic comes into refund means how a normal homebuyer would get refund for the amount that paid for the home. There are following which homebuyer can opt for process of refund
- File a complaint with RERA
- Get an order of refund
- Proceed before NCLT under section 7 as decree holder
Clarification regarding step 3: as I mentioned three steps, out of which two are easily readable but when it comes on third step, the first question which would be arise is that decree holder stands for whom? And would it stand before NCLT?
Let me clarify with the first question regarding decree holder, any person in whose favor judgment passed. Now let comes into second question every allottee can make his application directly to corporate insolvency resolution process (CIRP) before proceeding to NCLT.