SC restrains Amrapali Group’s directors from leaving the country


The Supreme Court has restrained the directors of Amrapali Group from leaving the country and appointed a senior advocate as amicus curiae, to assist it by taking up the home buyers’ cause

The Supreme Court, on October 13, 2017, restrained the directors of real estate major Amrapali Group, from leaving the country without its permission. A bench headed by chief justice Dipak Misra issued notice to the company and sought its reply within two weeks, on a plea filed by Amrapali Silicon City Flat Owners Welfare Society. The bench, also comprising justices AM Khanwilkar and DY Chandrachud, appointed senior advocate Shekhar Naphade as amicus curiae, to assist it by espousing the home buyers’ cause.

See also: SC notice to government, Amrapali on plea of over 100 home buyers

In a similar petition by 100 home buyers, who invested in three other projects of Amrapali Centurion Park Pvt Ltd at Greater Noida in Uttar Pradesh, the apex court had, on October 6, 2017, issued notice to the centre and the housing group. This plea sought quashing of a National Company Law Tribunal (NCLT) order, initiating insolvency proceedings against Amrapali Silicon City Pvt Ltd under the Insolvency and Bankruptcy Code, 2016, as the proceedings affected the home buyers of Amrapali Centurion Park Pvt Ltd.

Under the bankruptcy law, consumer and recovery cases and decrees passed by civil courts and consumer fora in favour of home buyers against real estate firms, cannot be executed once insolvency proceedings begin at the NCLT.

The plea has sought that either the home buyers are treated equally with banks and FIs, or the provisions of the bankruptcy code, which give priority to lending institutions, be held ultra vires to the constitution, as being violative of fundamental rights like rights to equality and life.

 

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