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Consumer RightsSupreme Court of India

Bikram Chatterji & Ors. vs Union of India & Ors. (Writ Petition (Civil) No. 940/2017)

Writ Petition (Civil) · 2023 INSC 178Decided 28 Feb 2023
Writ Petition (Civil) No. 940 of 2017
Ajay Rastogi · Bela M. Trivedi

Background

This writ petition originally arose from the Amrapali Group housing fraud, where the Supreme Court in 2019 had cancelled Amrapali's lease deeds and RERA registration, appointed a Court Receiver, and directed NBCC to complete stalled projects to protect defrauded homebuyers. Separately, other unrelated builders (Ace Group, Prateek Group, Paramount, CREDAI-NAREDCO and others) later intervened in the same proceedings seeking the same reduced 8% interest rate and restructured payment schedule that had been granted to help Amrapali homebuyers, and the Court had granted them interim relief in 2020. On an application by the Noida/Greater Noida Authorities, the Court on 7 November 2022 recalled those 2020 interim orders benefiting the other builders. The other builders then filed fresh applications asking the Court to recall its 7 November 2022 recall order and restore their earlier concessional interest relief.

Decision Breakdown

The Supreme Court dismissed all the applications, holding that the other builders/developers (Ace, Prateek, Paramount, CREDAI-NAREDCO, and others) were never part of the Amrapali homebuyer proceedings and had no legitimate claim to the special relief crafted specifically to rescue defrauded Amrapali homebuyers. The Court noted that Prateek Group's projects were actually completed well before the Amrapali proceedings began and it simply owed unpaid dues to Noida/Greater Noida Authorities, unrelated to any homebuyer distress. It held that its earlier order recalling the 2020 interim reliefs was correctly passed after hearing all parties, and a "mere technical objection" that one related order (10 July 2020) was not expressly recalled did not help the applicants since that order was only a clarification of the foundational order already recalled. The Court also rejected the fallback request to restore and hear the IAs on merits, since those parties were strangers to the Amrapali cause for which the Court had taken cognizance.

Lesson Learnt

Special interim relief crafted by a court for a specific, identified group of victims (here, defrauded Amrapali homebuyers) cannot be claimed by other unrelated parties simply because they face similar financial difficulties; relief tailored to one cause of action does not automatically extend to strangers who later attach themselves to the same proceeding.

Bikram Chatterji & Ors. vs Union of India & Ors. (Writ Petition (Civil) No. 940/2017) – Legal Case Shots | LegalAware