The Supreme Court recently granted interim relief to a group of homebuyers who sought a delay in making EMI payments to banks until they received possession of their allotted houses.
A division bench of Justice V Ramasubramanian and Justice Pankaj Mithal ordered that the banks take no coercive action against the homebuyers.
“Issue notice, returnable in four weeks. Since the petitioner has had the benefit of interim protection from 25.05.2022 till the date on which the impugned order was passed, the petitioner shall be entitled to the benefit of the same interim protection till the next date of hearing,” the order reads.
The appellant-homebuyers entered into a builder-buyer agreement with one Shubhkamna Buildtech Private Limited (builder) on November 1, 2012. The homebuyers also entered into a tripartite agreement with the builder and PNB Housing Finance Limited (finance company) in the form of a subvention scheme.
The builder breached the agreement with the homebuyers by failing to deliver possession of the units within the time frame specified. The aforementioned builder also failed to fulfill its obligation to pay EMIs. Meanwhile, the finance company had taken coercive legal action against the current homebuyers in order to recover the EMIs on the loan facility.
Dissatisfied, the homebuyers filed a writ petition with the Delhi High Court, requesting that the financial institutions refrain from charging the homebuyers pre-EMIs or full EMIs until the builder delivers the promised possession of the units.
The homebuyers had also sought interim relief from the finance company’s recovery proceedings. The High Court granted interim protection to homebuyers until the final disposition of the petitions in an order dated May 25, 2022.
While deciding the petitions on March 14, 2023, the High Court held that while the petitions are maintainable, they cannot be said to be entertainable due to the availability of effective alternative remedies available to homebuyers.
The High Court ruled that because the case was purely contractual in nature, the petitions could not be heard.
The homebuyers have now filed an appeal with the Supreme Court, challenging the order.
The homebuyers argued before the Supreme Court that the High Court’s decision had lifted the interim protection granted to them. As a result, the finance company’s bank officials have begun making repeated calls to homebuyers for EMI payment and have begun visiting their homes.
Given this, the homebuyers have petitioned the Supreme Court for interim protection until the resolution of the current appeals, as previously granted by the High Court.
Given the circumstances described by the homebuyers, the Apex Court granted them interim protection until the next hearing date.
The matter will be heard after four weeks.
