Query regarding filing of a case against builder
21-Aug-2023 (In Consumer Court Law)
As Homebuyers are unsecured creditors. If we file a legal case and after that If another reputed builder become Insolvent Like Jaypee. Then Can we be secured creditors as we have filed a legal case.
No u can't u have no legal rights to fight as a secure creditors, that why am advice you to move commission or somewhere else for recovery of your money otherwise u got lost in both hand pls act accordingly
Dear Client you option in case NCLT starts winding up proceedings is only to get yourself listed as a financial creditor with the Interim Resolution Professional (who oversees the entire insolvency process) and wait for your dues. Under the new Insolvency and Bankruptcy Act there is no such thing as a secured and unsecured creditor. It is better to get yourself listed in the insolvency process.
Firstly, as per the Insolvency and Bankruptcy Code, homebuyers fall under the category of operational creditors.
Secondly, if an insolvency proceeding is initiated against a corporate debtor i.e. the builder in your case, then a moratorium period is declared. Under this period no new case can be initiated against the corporate debtor and all the current pending cases are stayed.
Thirdly, if you had paid any builder for a flat and now Insolvency proceedings have been initiated against that builder, in that case you will have to file your claim under FORM B of the insolvency Regulations within stipulated time period mentioned by the IRP (Insolvency Resolution Professional).
(Legal assistant required for the process).
Secondly, if an insolvency proceeding is initiated against a corporate debtor i.e. the builder in your case, then a moratorium period is declared. Under this period no new case can be initiated against the corporate debtor and all the current pending cases are stayed.
Thirdly, if you had paid any builder for a flat and now Insolvency proceedings have been initiated against that builder, in that case you will have to file your claim under FORM B of the insolvency Regulations within stipulated time period mentioned by the IRP (Insolvency Resolution Professional).
(Legal assistant required for the process).
Filing a case will not make you secured creditor. In fact irrespective of your status as creditors, if you have purchased a house or have taken loan from the bank to pay the builder, then you acquire a right to file a claim to Interim Resolution Professional (IRP) under section 13 by submitting all the relevant papers but only when the insolvency proceeding are initiated against the builder. Alternatively, if you have purchased/booked a flat or house and you think that according to the terms of agreement, builder failed to provide you a house, you can always file a case against the builder for recovery of money under Real Estate (Regulation and Development) Act, 2016 (RERA). This is the best remedy.
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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