# In the matter of Court On Its Own Motion vs. Govt of NCT of Delhi and Ors. W.P.(C) 9550-2019

> HC judgment dated 2023-03-13. Citation: TCN-2023-HC-00075. The case originates from a letter by Sh. Vinod Kumar Naugain, converted into a Public Interest…

- **Court:** HC
- **Order date:** 13 Mar 2023
- **Citation:** TCN-2023-HC-00075
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/court-on-its-own-motion-vs-govt-of-nct-of-delhi-and-ors-wp-9945c8df

## Summary

### Background

The case originates from a letter by Sh. Vinod Kumar Naugain, converted into a Public Interest Litigation (PIL), addressing grievances of homebuyers facing issues with home loans, delayed possessions, and tax benefits. The complainant seeks directions to the Central Government to draft a comprehensive scheme to address these issues, including tax benefits for EMI payments, legal aid, and laws protecting buyer interests. The complainant also alleges misuse of the Insolvency and Bankruptcy Code by builders to escape dues to creditors, including homebuyers.

## Facts

Sh. Vinod Kumar Naugain filed a letter which was converted into a Public Interest Litigation (PIL) regarding the grievances of homebuyers. These grievances include delays in possession of flats, inability to claim tax benefits on EMI payments, and the alleged misuse of the Insolvency and Bankruptcy Code (IBC) by builders to avoid paying dues to creditors, including homebuyers. The complainant sought directions for the Central Government to formulate a comprehensive scheme addressing these issues, including granting full tax benefits from the date of EMI payment, providing free legal aid, and framing laws to protect buyer interests. The Reserve Bank of India (RBI) filed a counter affidavit, outlining existing mechanisms for loan restructuring and the autonomy of banks

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## Issues and analysis

### Issue 1: Whether the court should direct the Central Government to formulate a comprehensive scheme to …

**Ratio:** Courts should not interfere with economic policy and should defer to expert bodies like

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**Reasoning:** The court relies on several Supreme Court judgments, including Peerless General Finance

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**Interpretation:** The court interprets the role of the judiciary as being limited to ensuring

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**Application:** The court applies this ratio to the specific facts of the case by declining to

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## Parties

- **Judges:** THE CHIEF J…; Subramonium…
- **Appellants:** COURT ON ITS OWN…
- **Respondents:** GOVT OF NCT OF…
- **Other parties:** Kohi…

## Timeline

- **2019-01-01 — Writ Petitio…**: W.P.(C) 9550/2019 filed…
- **2023-03-13 — Date of De…**: Final judgment delivered by…

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