Amrapali Group Directors restrained from leaving the country, orders SC

October 13, 2017

Amrapali Centurion Park Pvt Ltd. directors restrained

The Supreme Court issued a restraint notice against the Amrapali Group directors, after which they are barred from leaving the country without the permission of the court. A bench headed by Chief Justice Dipak Misra, Justice A M Khanwilkar and Justice D Y Chandrachud issued notice to the Amrapali developers and also sought its response within two weeks on a petition filed by Amrapali Silicon City Flat Owners Welfare Society. The court also appointed senior advocate Shekhar Naphade as amicus curiae to assist it in supporting the homebuyers. On October 6 the court issued a notice to the Centre and the housing group, in a petition filed by 100 homebuyers who had invested in the project of Amrapali Centurion Park Pvt Ltd located in sector tech zone 4 at Greater Noida. The present petition was filed seeking cancellation of the National Company Law Tribunal (NCLT) order which admitted and initiated the insolvency proceedings against Amrapali Silicon City Pvt Ltd under the Insolvency and Bankruptcy Code, 2016 as the insolvency proceedings affected the homebuyers of Amrapali Centurion Park Pvt Ltd. Under the Insolvency and Bankruptcy code of 2016, in the cases filed by consumer for recovery where the decrees is passed by civil courts and consumer fora in favour of consumer against real estate firms could not be executed once insolvency proceedings is initiated at the National Company Law Tribunal. In the instant petition, the homebuyers are seeking that either they should be treated equally with banks and financial institutions, or the provision of the IBC which gives greater importance to lending institutions should be struck down and it should be declared violative of fundamental rights like right to life and equality guaranteed under the Constitution of India.