A Double Dilemma: Harmoniously Construing The Provisions Of RERA And IBC 2016
- IJLLR Journal
- 6 days ago
- 1 min read
Danish Sharma, O.P Jindal Global Law School
ABSTRACT
Home ownership is a subject that requires to be prioritized due to an array of factors that need to be taken into consideration before finalizing the deal. People having stable incomes and savings in today’s time have a variety of options to choose from by virtue of the expansion in the real estate sector in our country. However, aside from the dilemma of selecting the right home another dilemma has arisen in recent times with regards to the rights and appropriate forum for resolving disputes of allottees in cases where the project is delayed and other similar circumstances that arise when the rights and expectations of the homebuyers are negatively affected due to default on part of the developer of the project.
This dilemma is focused on the two crucial pieces of legislation i.e. The RERA act 2016 and The IBC 2016 where the former elaborates on the rights of homebuyers in cases of project delays, misrepresentation by the developer about the property, issue regarding the condition and standard of the piece of real estate whereas the latter imposes penalties on developers by treating homebuyers as “financial creditors” who can start the insolvency process in case where the developer absconds after taking the money from the allottees before the completion of the project or keeps on delaying the same. This article dives deeply into how the court has attempted to harmoniously construe both provisions through its judgements and how these overlapping pieces of legislation have caused confusion while providing solutions as to how one shall not overpower the other and exist harmoniously.
