Case reference
In one case, Himanshu Singh and others contested Punjab & Sindh Bank’s proceedings before the DRT for loan defaults related to Noida-based Future Estate Projects. After the Delhi High Court refused to intervene, the petitioners approached the Supreme Court. Supreme Court’s Observations: Petitioners contended that they were unfairly targeted for loan repayments for funds disbursed directly to developers. They neither completed the projects nor delivered the properties. They maintained that they had no control over the loan utilisation. Hence, were unfairly asked to repay loans for properties they did not receive or benefit from. The Supreme Court, agreed to hear the matter. They issued notices to the respondents and passed an interim order to prevent any coercive actio. This included complaints under Section 138 of the Negotiable Instruments Act, by banks, financial institutions, or developers against the homebuyers. Additionally, the Court directed the respondent builders and developers to submit a reply affidavit. It should detail their assets within two weeks. Thus, warning of coercive measures to ensure compliance. This ruling offers temporary relief to numerous homebuyers facing financial and legal challenges due to stalled housing projects. Thus, providing them respite while the Court deliberates their cases.
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