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2023 (3) TMI 118 - SC - Indian LawsFailure to give possession of flats to homebuyers - HELD THAT - The undisputed facts which have come on record are that the initiation of proceedings in the first instance in BIKRAM CHATTERJI ORS. VERSUS UNION OF INDIA ORS. 2019 (7) TMI 1233 - SUPREME COURT was only confined to consider how to secure the interests of homebuyers of Amrapali Group of Companies and at a later stage, interim application was filed by the Ace Group of Companies and later few other group of companies also intervened in the proceedings, but admittedly either of the group of companies in no manner was related to the functioning of the Amrapali Group of Companies of which reference has been made in para 156 of the judgment. It is, however, true that at one stage this Court stepped into the interim application filed by Ace Group of Companies and by the other group of companies as well and passed certain interim orders protecting them in reference to revised rate of interest chargeable from the builders/developers with a further direction of restructuring of the payment schedule payable to Noida/Greater Noida authorities. The interim applications which have now been filed by various group of companies for recalling of the order dated 7th November, 2022, pursuant to which we consciously recalled our orders dated 10th June, 2020, 19th August, 2020 and 25th August, 2020 and in the present facts and circumstances, we find no reason/justification to recall our order dated 7th November, 2022. Consequently, the interim applications are without substance and deserve to be dismissed. Application dismissed.
Issues Involved:
1. Recall of the order dated 7th November, 2022. 2. Validity of the orders dated 10th June, 2020, 19th August, 2020, and 25th August, 2020. 3. Application of reduced interest rates to builders other than Amrapali Group of Companies. 4. Impact of the COVID-19 pandemic on real estate projects. 5. Authority of Ace Group of Companies to represent other builders. 6. Compliance with the notification dated 9th June, 2020 by the State of Uttar Pradesh. 7. Relevance of the order dated 10th July, 2020. Detailed Analysis: 1. Recall of the Order Dated 7th November, 2022: The present batch of IAs was filed by various promoters/developers/builders in Noida/Greater Noida seeking the recall of the order dated 7th November, 2022. The Court had previously recalled interim orders dated 10th June, 2020, 19th August, 2020, and 25th August, 2020, which were passed to address the grievances of homebuyers against the Amrapali Group of Companies. The applicants argued that the order dated 7th November, 2022, which recalled these interim orders, was unjustified and requested its recall. 2. Validity of the Orders Dated 10th June, 2020, 19th August, 2020, and 25th August, 2020: The Court noted that the interim orders passed on 10th June, 2020, 19th August, 2020, and 25th August, 2020 were initially intended to address the financial distress caused by the COVID-19 pandemic. These orders reduced the rate of interest on outstanding premiums and other dues to 8% per annum for all builders/project proponents. However, the Court later concluded that these orders were not applicable to builders other than the Amrapali Group of Companies and thus deserved to be recalled. 3. Application of Reduced Interest Rates to Builders Other than Amrapali Group of Companies: The Ace Group of Companies had filed IA No. 4139 of 2020 seeking similar reliefs to those granted to the Amrapali Group of Companies, including a reduction in interest rates. The Court found that Ace Group of Companies was not authorized to represent other builders and that no material was presented to justify extending the same benefits to other builders. The Court emphasized that the relief granted to Amrapali Group was specific to their unique circumstances, including the appointment of a Court Receiver and detailed directions to secure the interests of homebuyers. 4. Impact of the COVID-19 Pandemic on Real Estate Projects: The Court acknowledged the financial difficulties faced by builders due to the COVID-19 pandemic. The State of Uttar Pradesh had issued general directions on 9th June, 2020, reducing the rate of interest for all builders. The Court's order dated 10th June, 2020, which reduced the interest rate to 8%, was influenced by this notification. However, the Court later determined that this reduction should not have been applied to builders other than the Amrapali Group of Companies. 5. Authority of Ace Group of Companies to Represent Other Builders: The Court noted that Ace Group of Companies filed IA No. 4139 of 2020 on its own behalf and was not authorized to represent other builders. The Court emphasized that Ace Group of Companies did not hold a power of attorney or any authorization from other developers/project proponents working with Noida/Greater Noida authorities. Therefore, the relief sought by Ace Group of Companies could not be extended to other builders. 6. Compliance with the Notification Dated 9th June, 2020 by the State of Uttar Pradesh: The Court recognized that the notification dated 9th June, 2020, issued by the State of Uttar Pradesh, reduced the interest rates for all builders. However, the Court clarified that this notification could not retroactively apply to the orders passed on 10th June, 2020, 19th August, 2020, and 25th August, 2020, which were specific to the Amrapali Group of Companies. 7. Relevance of the Order Dated 10th July, 2020: The applicants argued that the order dated 10th July, 2020, which clarified the order dated 10th June, 2020, had not been recalled and should still be in effect. The Court dismissed this argument, stating that the order dated 10th July, 2020, was merely a clarification of the foundational order dated 10th June, 2020, and did not independently alter the substantive relief granted. Conclusion: The Court dismissed the interim applications filed by various group of companies for recalling the order dated 7th November, 2022. The Court found no reason or justification to recall the order, as the relief granted to the Amrapali Group of Companies was specific to their unique circumstances and could not be extended to other builders. The Court emphasized that the interim orders dated 10th June, 2020, 19th August, 2020, and 25th August, 2020, were rightly recalled, and the present applications were without substance. Consequently, the IAs were dismissed.
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