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Consumer RightsSupreme Court of India

Tejas J. Shah and Amisha T. Shah v. Mantri Technology Constellations Pvt. Ltd. (Now Buoyant Technology Constellations Pvt. Ltd.)

Civil Appeal · 2026 INSC 746Decided 27 Jul 2026
Civil Appeal Nos. 4289-4290 of 2025
Justice Vikram Nath · Justice Sandeep Mehta

Background

Tejas and Amisha Shah, along with other homebuyers, had booked flats in the "Mantri Manyata Energia" residential project, with possession promised by December 2018. When possession was not delivered as promised, the homebuyers filed a consumer complaint before the National Consumer Disputes Redressal Commission (NCDRC) against the developer and several associated respondents: a related company, its alleged promoters/directors, and the landowners. While the complaint was pending, the developer (Respondent No.1) was pushed into insolvency proceedings, triggering a moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC) that legally freezes proceedings against it. The NCDRC, however, went further and adjourned the entire complaint indefinitely, including against the other, non-insolvent respondents.

Decision Breakdown

The Supreme Court held that the NCDRC was wrong to halt the whole case. An IBC moratorium under Section 14 protects only the company actually undergoing insolvency resolution (here, Respondent No.1). It does not automatically extend to other parties such as an associated company, its directors, or the landowners, against whom there was no statutory bar to proceeding. The NCDRC ought to have gone ahead and examined whether these other respondents bore any liability, rather than closing the door on that inquiry at a preliminary stage. The Court also declined the homebuyers' request to decide the merits itself, since the respondents' various defenses (privity of contract, maintainability, absence of independent obligations) were yet to be examined by the NCDRC. The appeals were partly allowed: the NCDRC's rejection of the applications to continue the complaint was set aside, and the NCDRC was directed to proceed with hearing the complaint as against Respondent Nos. 2 to 7, while proceedings against Respondent No.1 remain governed by the IBC moratorium.

Lesson Learnt

An insolvency moratorium shields only the specific company undergoing insolvency resolution. It does not automatically halt legal proceedings against other related parties like co-developers, directors, or landowners, who can still be pursued for their own liability in a consumer complaint.

Tejas J. Shah and Amisha T. Shah v. Mantri Technology Constellations Pvt. Ltd. (Now Buoyant Technology Constellations Pvt. Ltd.) – Legal Case Shots | LegalAware