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Varun Prakash & Anr vs Union Of India & Ors on 24 May, 2022

Author: Sanjeev Narula

Bench: Sanjeev Narula

                          $~268
                          *     IN THE HIGH COURT OF DELHI AT NEW DELHI
                          +     W.P.(C) 8168/2022 & CM APPL. 24686/2022
                                VARUN PRAKASH & ANR.                                     ..... Petitioners
                                                   Through:      Mr. Ratnesh Sharma and Mr. Rahul
                                                                 Raman, Advocates.

                                                   versus

                                UNION OF INDIA & ORS.                                   ..... Respondents
                                                   Through:      Ms. Sushila Narang, Senior Standing
                                                                 Counsel for R-1 & 2.
                                                                 Mr. Rachit Bigghe, Advocate for R-4
                                                                 (ICICI Bank).

                                CORAM:
                                HON'BLE MR. JUSTICE SANJEEV NARULA
                                             ORDER

% 24.05.2022 CM APPL. 24687/2022 (under Section 151 of the Code of Civil Procedure, 1908 seeking exemption from filing legible copies of the annexures)

1. Exemption is granted, subject to all just exceptions.

2. The Petitioner shall file legible and clearer copies of exempted documents, compliant with practice rules, before the next date of hearing.

3. Accordingly, the application stands disposed of.

W.P.(C) 8168/2022 & CM APPL. 24686/2022 (seeking ad-interim ex-parte injunction against Respondents)

4. Issue notice. Ms. Sushila Narang, Senior Standing Counsel, accepts notice on behalf of Respondents No. 1 and 2 viz. Union of India and the Reserve Bank of India. Mr. Rachit Bigghe, Advocate accepts notice on behalf Signature Not Verified Digitally Signed W.P.(C) 8168/2022 Page 1 of 4 By:SAPNA SETHI Signing Date:25.05.2022 11:55:27 of Respondent No. 4 - ICICI Bank Pvt. Ltd. Counter affidavit, if any, be filed within a period of four weeks from today.

5. Let notice be served upon Respondent No. 3- Wave Megacity Centre Private Limited, upon filing of process fee, by all permissible modes, returnable on the next date of hearing.

6. The Petitioners state that they entered into a Serviced Studio Apartment Allottee(s) Arrangement on 27th June, 2013 with Respondent No. 3. The Petitioners also availed financial facilities vide a Facility Agreement dated 20th May, 2014 from Respondent No. 4 which was in the nature of a subvention scheme.

7. It is averred that Respondent No. 3 has not delivered the possession of the said units within the stipulated time, and has failed to carry out its liability of paying EMIs. Meanwhile, Respondent No. 4 has initiated coercive legal action against the Petitioners for the purpose of recovering the said EMIs on the loan facility.

8. In the light of the above-stated submissions, the Petitioners have prayed for restraining Respondent No. 4 from taking any coercive actions against the Petitioners.

9. Reliance is placed on the interim orders dated 31st January, 2022,1 and 28th March, 2022,2 passed by this Court in a batch of petitions, wherein, the 1 In W.P.(C) 10223/2021 & other connected matters.

2

In W.P.(C) 3107/2022 & other connected matters.

Signature Not Verified Digitally Signed W.P.(C) 8168/2022 Page 2 of 4 By:SAPNA SETHI Signing Date:25.05.2022 11:55:27

Court has directed the Respondents not to take any coercive steps against the Petitioners therein. The said orders are continuing.

10. Counsel for the Petitioner submits that subsequent to the said orders, in another batch of petitions,3 this Court has granted similar protection to the Petitioners therein.

11. Additionally, counsel for the Petitioner also places reliance upon the order of the Supreme Court in W.P.(C) 940/2017, 4 which reads as follows:

"(a) The accounts of the defaulting flat buyers who had availed of subvention facility, shall not be treated as 'NPA Accounts", nor shall their CIBIL Score be taken as "0" level.

(b) No bank shall impose penalty for defaults committed by the flat buyers. The Banks shall however, be entitled to the principal amounts as well as the interest leviable in respect of such principal amounts.

(c) It is made clear that the liability to make all payments will arise after the project is complete and the possession is offered to the individual flat buyers but the flat buyer shall be liable to make good payment in terms of the agreement entered into with the Developer/Amrapali Group of Companies. In other words, the liability shall be from the date of default but it will stand deferred till the possession is offered to him."

12. In view of the foregoing, it is directed as follows:

A. Respondents are restrained from taking any coercive action against the Petitioner till the next date of hearing. B. This order would bind the assignees of debts from original lenders.

C. Banks/NBFCs/other Financial Institutions are directed to provide information qua the Petitioners' CIBIL score to TransUnion CIBIL Limited [formerly known as Credit Information Bureau 3 In W.P.(C) 7096/2022 and other connected matters vide Order dated 17th May 2022 and W.P.(C) 7582/2022 and connected matters vide Order dated 18th May 2022.

4

Order dated 19th April, 2022.

Signature Not Verified Digitally Signed W.P.(C) 8168/2022 Page 3 of 4 By:SAPNA SETHI Signing Date:25.05.2022 11:55:27

(India) Ltd.], in terms of the order passed today, so that the CIBIL scores of the Petitioners are suitably amended in order to ensure that the Petitioners are not financially prejudiced.

13. List along with the connected batch of petitions on 11th July 2022.

SANJEEV NARULA, J MAY 24, 2022 d.negi Signature Not Verified Digitally Signed W.P.(C) 8168/2022 Page 4 of 4 By:SAPNA SETHI Signing Date:25.05.2022 11:55:27