Case Number: Civil Appeal No(s). 5231-38 of 2019 and SLP (C) No. 12150 of 2019

Judges Name: Hon’ble Judges Dr Dhananjaya Y Chandrachud J, Vikram Nath J and Hima Kohli 

Order dated: 08.09.2021

Facts of the Case:  

The Appellants are home buyers who had entered into an agreement with the Respondents for purchasing homes. The Respondents failed to return possession of the properties on time as stipulated in the agreements. Aggrieved, the Appellants filed for refund of their monies before the National Consumer Dispute Redressal Commission (NCDRC) their claims were allowed. The Respondents approached the Hon’ble High Court of Delhi and obtained stay orders for the same. The Appellants filed for execution of the NCDRC orders before the NCDRC which was disposed with instruction that nothing shall be enforced unless the Hon’ble High Court of Delhi decided on the matter. In the meantime the operational creditor of the Respondent filed an application for initiation of Corporate Insolvency Process (CIRP) against the Respondent, the same was admitted by the Hon’ble NCT and moratorium was declared. The Appellants have preferred an appeal against order of NCLT declaring moratorium which will freeze the execution proceedings for recovery of the monies due. 

Order:

The Hon’ble Supreme Court observed/held as follows:

• The Committee of Creditors has approved the resolution plan and has submitted the plan for approval of the NCLT.
• That if there are any objections to the Resolution Plan, then the Appellants will have to file it with the NCLT as they have participated in the proceedings before the Resolution Professional and the COC. 
• The Appellants have a right to proceed against the promoters of the Corporate Debtor owing to the fact that the moratorium is not applicable to them but only to the Corporate Debtor. 
• That the properties of the promoters of the Corporate Debtor cannot be attached while the Resolution Plan is pending before the NCLT.
  

The Supreme Court disposed the appeal with a direction that appellants can take recourse to remedies after the decision of the NCLT.