RP’s Plea Challenging Acquisition of Slum Plot by an Authority Dismissed as Moratorium Was Declared Against CD | SC

  • Blog|News|Insolvency and Bankruptcy Code|
  • 2 Min Read
  • By Taxmann
  • |
  • Last Updated on 21 October, 2024

Recent Posts

Blog, News, Insolvency and Bankruptcy Code

RP’s Plea Challenging Acquisition of Slum Plot by an Authority Dismissed as Moratorium Was Declared Against CD | SC

Blog

Interest on Purchase of Securities for Broken Period Deductible u/s 37 If Securities are Treated as Stock-in-Trade | SC

Latest from Taxmann

Slum Rehabilitation Development

Case Details: Rajan Garg v. Chief Executive Officer - [2024] 167 taxmann.com 443 (SC)

Judiciary and Counsel Details

  • Dr. D.Y. Chandrachud, CJ., J.B. Pardiwala & Manoj Misra, JJ.
  • Siddharth Bhatnagar, Sr. Adv., Rahul Arya, Premlal Krishnan, Aditya Sidhra, Ms Pracheta Kar, Nadeem Afroz, Yogesh Sharma, Advs. & Rohit Amit Sthalekar, AOR, for the Petitioner.
  • Shyam Divan, Sr. Adv., Saurabh Kalia, Ms Supriya Juneja, AOR, Ms Anshula Laroiya & Ms Tanvi Bansal, Advs., for the Respondent.

Facts of the Case

In the instant case, the corporate debtor, the developer, had acquired a plot and was issued a Letter of Intent (LoI) for a slum redevelopment proposal. However, it failed to implement the Slum Rehabilitation Schemes contemplated by the amended Maharashtra Slum Areas Act, 1971.

Since there was no construction, many slum dwellers were deprived of the transit rent. Consequently, Slum Rehabilitation Authority (SRA) terminated the appointment of the corporate debtor and permitted the society to appoint another developer.

Further, SRA proceeded with the acquisition proceedings and declared the slum plot as a slum rehabilitation area. Meanwhile, the CIRP was initiated against the corporate debtor and the petitioner.

The RP of the corporate debtor filed an instant writ petition on the ground that the NCLT declared a moratorium against the corporate debtor, so the acquisition could not proceed.

The petitioner-RP of the corporate debtor, filed a writ petition before the High Court on the ground that the section 14 moratorium declared by the NCLT meant that the acquisition could not proceed.

High Court Held

The High Court vide the impugned order dismissed the said writ petition on the ground that the developer had applied for a Lol, it assumed an obligation to provide rehabilitation units and, in the meantime, to provide transit rent or transit accommodation to eligible slum dwellers and that was a condition precedent to its acquiring free sale rights. Thereafter, an appeal was made before the Supreme Court.

In view of the facts, the Supreme Court held that the instant Court was not inclined to entertain the Special Leave Petition under Article 136 of the Constitution of India, and therefore, the same was to be dismissed.

List of Cases Reviewed

Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.

Leave a Reply

Your email address will not be published. Required fields are marked *

«

Everything on Tax and Corporate Laws of India

To subscribe to our weekly newsletter please log in/register on Taxmann.com

Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied