Builder declared bankrupt how can we claim our money back

788 votes

Once the NCDRC grants the relief for returning the amount it can be recovered through execution proceeding under section 27 of consumer act, by making the promoter/director personally liable. it can be recovered from the properties of the director/ promoter in case the companies goes bankrupt.

Advocate Poonam Atey LawRato

796 votes

Dear sir you need to file case in NCDRC in order to make up for a claim and in case the builder gets insolvent then you may have a claim as creditor, if the assets of the builders gets liquidated you would get your claim

Advocate Nitish Banka LawRato

583 votes

Only after you have a judgment in your favour granting you compensation, can you seek enforcement of the same. When execution proceedings are filed, assets of the defaulter will be attached. Date of execution proceedings will also depend upon appeal filed by builder against the judgment and any stay granted,

Advocate Renu Gupta LawRato

867 votes

In your situation, as rightly pointed out by you, you should proceed with a consumer complaint against the builder to secure a decree in your favour whereby you would become a recognised credit of the builder.. once the decree has been passed in your favour by the consumer court, you can use the same to approach the court for winding up the company and secure your money through sale of company assets etc.

However, in case the builder has officially gone bankrupt or has sent you a written communication stating that they have become bankrupt, then you can directly approach the court for winding up the company and secure your money through sale of company assets etc.

In addition to the above, in case there is a situation where the company does not have assets to repay your money, then you could, provided the requirements under law are satisfied, consider a prayer for lifting the corporate veil of the builder company (very limited scenarios is this possible) and claim the money owed by the builder from its promoters.

Hope the above is helpful.

Advocate Tushar A John LawRato