Bikram Chatterji v Union of India, (2018) 17 SCC 691 - Synopsis
Ahir Mitra 9 Jul 2021

Bikram Chatterji v. Union of India.

(2018) 17 SCC 691: 2018 SCC OnLine SC 1086

 In 2011, Amrapali Group Projects announced the building of 42,000 apartments in Noida and Greater Noida, with the promise of possession in 36 months. Between 2010 and 2014, buyers signed a buyer's agreement. They were threatened with forfeiture even after paying 40% of the consideration.

The agreement contained some terms as to the interest of owners, Clause 14 enabled himself to finance himself from any loans by way of mortgage/charge/security, and allottees were not allowed to protest. Clause 15 gave the builder complete control over the apartment, removing any obligation or interest from the allottees notwithstanding full payment. Clause 19(a) required the builder to finish Centurion Park apartments within 30 months of the start of the signing agreement, which might be more or less than 6 months.

Clause 19(c) stipulated that the builder pays a monthly charge of Rs. 5 per square foot for the time of delay. Respondents failed to meet their duty to provide apartments within 36 months. They did not pay the allottees or the bank any money. Furthermore, buyers were required to pay the EMIs to the bank, resulting in a double loss. Consumer complaints were filed with the NCDRC by certain customers. In 2017, the Bank of Baroda filed a corporate petition with the NCLT under Section 7 of the 2016 Insolvency and Bankruptcy Code.

Interim Resolution Professional was appointed by the NCLT. Under the SARFAESI Act of 2002, a moratorium was also announced. Thousands of homeowners in Amrapali's different developments were affected by the decree. In the meanwhile, the Supreme Court has received a writ petition. After hearing the allegations and considering the claims of cash draining leveled against the Amrapali Group, the apex court decided to take notice of the case and ordered a forensic audit of all Amrapali Group agencies.

The issue was concerned in this case were, the charges levied by officials, banks, home purchasers and development agencies shall be valid, The Amrapali Group’s RERA registration may be canceled, Form of relief accessible to homebuyers.

The Supreme Court held that RERA Amrapali Group's RERA registration would be canceled, and NBCC (India) Ltd is nearing completion on a number of projects. The individual lease agreements signed in favor of Amrapali Group Authorities for projects under consideration have been canceled, and all rights have now been placed in the Court Receiver, who has the ability to alienate, lease out, or take any choice to raise cash. The money received will be sent to NBCC, which will complete the project with an 8% profit margin.

Authorities and banks do not have the authority to sell property purchased by property buyers or land leased for the purpose of paying their debts. They must receive all of their charges from the sale of the Amrapali Group's other assets. The lessee's right shall be enshrined in the Court Receiver (formerly with the Amrapali Group), who shall, on his behalf, conclude a tripartite agreement and perform all other acts as may be required, as well as ensure that the title is transferred to the home-buyers and that possession is transferred to them.





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