ET: SC orders Emaar MGF Land to refund homebuyer’s money within four weeks

2 April 2019: The Supreme Court (SC) on March 29 ordered Emaar MGF Land to refund a home buyer’s money within a period of four weeks from March 29 with 10.7% interest.

The bench of Judge Rohinton Fali Narman and Vineet Saran said that the matter is being disposed of today as it is clear that the appellant is an allottee in the real estate project of Emaar MGF Land. As an allottee, it has either a right to get possession of the flat or to claim refund. It has been argued before us that the appellant has been offered possession but has declined.

In this event, it is clear that the appellant is entitled to refund of monies that it has paid. This refund will be made by Emaar, the bench said.

SC also made it clear that this order is not to be treated as a precedent.

On January 24, 2019, NCLT-Delhi initiated corporate insolvency resolution process (CIRP) against Emaar MGF Land. However, on February 1, 2019 Hadi Mohd Taher Badri, director of Emaar MGF Land, moved National Company Law Appellate Tribunal (NCLAT) informing them that they have settled the case with the home buyer which filed the insolvency case.

Badri further appealed that since the insolvency resolution professional has not yet formed the committee of creditors and has not issued any public announcement, it should also be disposed off.

Home buyers, however, pleaded that the company should settle the case with all the buyers and not just one.

NCLAT on hearing both the petitions allowed Emaar MGF Land one chance to settle the case with the buyers. It also ordered the IRP to not issue any public announcement or constitute the committee of creditors until further order.

“Emaar however misinterpreted the order and sent emails to home buyers to take possession after clearing their exorbitant demands,” said advocate Aditya Parolia and advocate Piyush Singh, who represented home buyers.

Hence they filed an appeal before the apex court which now stands disposed off.

Meanwhile, NCLAT had allowed home buyers to file interlocutory application through their representatives while adjourned the matter saying that let the Supreme Court first decide the issue. 

Now, NCLAT will hear the case on April 4, 2019.

The Economic Times reported

Categories: General News, India Bankruptcy

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