# In the matter of Vishal Chelani & Ors. vs. Debashis Nanda

> SC judgment dated 2023-10-06. Citation: TCN-2023-SC-00033. The appellants challenged a decision by the National Company Law Appellate Tribunal (NCLAT), New…

- **Court:** SC
- **Order date:** 6 Oct 2023
- **Citation:** TCN-2023-SC-00033
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/vishal-chelani-ors-vs-debashis-nanda-8d88a47d

## Summary

### Background

The appellants challenged a decision by the National Company Law Appellate Tribunal (NCLAT), New Delhi, which ruled that as beneficiaries of a decree by the Uttar Pradesh Real Estate Regulatory Authority (UPRERA), the order of the Resolution Professional (R.P.) proposing that they be treated differently from other home buyers allottees, does not call for interference. The appellants are home buyers who opted for allotment in a real estate project of the respondent company. Aggrieved by the delay in the completion of the project, the appellants approached the UPRERA, which upheld their entitlement to refund amounts deposited by them, together with interest. Subsequently, insolvency proceedings were initiated under the Insolvency and Bankruptcy Code, 2016 (IBC). A

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## Facts

The appellants are home buyers who had invested in a real estate project developed by the respondent company, Bulland Buildtech Pvt. Ltd. Due to delays in the project's completion, the appellants approached the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) seeking a refund of their deposited amounts with interest. UPRERA ruled in favor of the appellants, ordering the refund. Subsequently, insolvency proceedings were initiated against the respondent company under the Insolvency and Bankruptcy Code, 2016 (IBC). The resolution plan proposed a distinction between home buyers who had approached RERA and those who had not, offering different terms. The appellants challenged this distinction, arguing that all home buyers should be treated equally as financial

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## Issues and analysis

### Issue 1: Whether home buyers who have obtained a decree from RERA should be treated differently from other …

**Ratio:** Home buyers are classified as financial creditors under Section 5(8)(f) of the IBC, and

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**Reasoning:** The court reasoned that distinguishing between home buyers who have approached RERA and

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**Interpretation:** The court interpreted Section 5(8)(f) of the IBC to include home buyers as

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**Application:** The court applied the ratio to the specific facts of the case, holding that the

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## Parties

- **Judges:** S. Ravindr…; Aravind…
- **Appellants:** VISHAL CH…
- **Respondents:** Bulland Buildtech…; DEBASHIS…

## Timeline

- **N/A — Appellants approached…**: Appellants, as home buyers, approached UPRERA…
- **N/A — UPRERA O…**: UPRERA ruled in favor of the appellants, ordering a refund of their deposited amounts…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(8) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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