NEW DELHI: The Supreme Court on Monday upheld the initiation of corporate insolvency resolution proceedings against real estate firms Bhasin Infotech and Infrastructure Private Limited and Grand Venezia Commercial Towers Private Limited, reinforcing the rights of homebuyers and commercial allottees.
A bench comprising Justices Sanjay Kumar and K Vinod Chandran dismissed the appeals filed by the erstwhile directors of the two companies, including Satinder Singh Bhasin. The bench held that the developers failed to deliver functional units and had misled the court regarding the completion status of the project.
Rejecting the appellants’ contention that construction had been completed in all respects and possession had been handed over to some allottees, the court said the claim was “found to be without merit and factual foundation”.
“Notwithstanding the letters and documents sought to be relied upon in that regard, the ground reality is otherwise. Neither has the construction been completed nor could possession of units be delivered to the allottees without fulfilling all necessary formalities in that regard after completion of the building in all respects,” Justice Sanjay Kumar, who authored the judgment, observed.
The verdict held that the company petition instituted against both corporate debtors by the allottees of 103 units was maintainable on all counts. It said the allottees had clearly established the existence of financial debt and default, as the units for which they had paid substantial consideration were neither completed nor delivered to them till date.
“We, accordingly, find no error having been committed either by the National Company Law Tribunal (NCLT) in admitting the company petition or by the National Company Law Appellate Tribunal (NCLAT) in confirming the same in appeal. Hence, Civil Appeal Nos. 13779 and 13812 of 2025 are bereft of merit and deserve to be dismissed,” the bench said.
The case originated from a 2021 petition filed by 141 allottees of the Grand Venezia Commercial Tower project in Greater Noida. The allottees alleged that although possession was promised by May 2013, the units were unfit for occupation and lacked a completion certificate from the Uttar Pradesh State Industrial Development Authority (UPSIDA).
They further claimed that the developers had stopped paying the promised “assured returns” from 2014 onwards, despite repeated assurances.