BANARAS HINDU UNIVERSITY

LAW SCHOOL
INTRA-FACULTY MOOT COURT COMPETITION, 2019

MOOT PROPOSITION

1. The Republic of Basseypur is an independent “Union of States” which got its

independence from British Rule in 1947. The Constitution of Basseypur establishes
Basseypur as a Sovereign, Socialist, Secular, Democratic and Republic state. The
Constitution of Basseypur guarantees several fundamental rights, broadly
corresponding to those recognized in International Human Rights instruments, which
can be enforced in the Constitutional Courts of Basseypur. People of Basseypur are
very religious and also very concerned about environment. Moreover, Union of
Basseypur is a signatory to various International instruments including UNCITRAL
Model Law.

2. Initially, the concept of Caveat Emptor was governing the relation between consumer
and service providers, which was causing so many inconvenience to the consumers,
and therefore the Parliament of Republic of Basseypur enacted the Consumer
Protection Act, 1986 to meet the long-felt need of better protection of the interests of
consumers and for the purpose, to make provision for the establishment of Consumer
forums and other authorities for the settlement of consumer disputes and for matter
connected therewith. The Act also sought to promote and protect the rights of
consumers.

3. To meet the housing demands of the exponentially growing population of the

Republic of Basseypur, the real-estate sector was developing at a rapid rate. There
were several news reports about incidents of defrauding home-buyers by the builders.
Various protests and agitations were also witnessed. Therefore, the need to regulate
the real-estate sector was felt. Though the Consumer Protection Act, 1986 was
available as a forum to the buyers in the real estate market, the recourse was only
curative and was not adequate to address all the concerns of buyers and promoters in
that sector. The lack of standardisation had been a constraint to the healthy and

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 orderly growth of industry. The Parliament of Republic of Basseypur, thus enacted the
Real Estate Regulation Act in the year 2016.

4. Mr. Perpendicular is a citizen of Republic of Basseypur. He had a difficult childhood,

being the eldest son of his parents in a family of eight members. Living in a rented
room, he always dreamt of settling into his own house. Battling all the financial
inadequacies, he, with his hard work and commitment, was successful in securing a
job in the State Agricultural Department. This ushered in better days and he was
provided with accommodation in a government quarter. Having acquired financial
stability, Mr. Perpendicular started saving all his hard-earned money for his childhood
dream.

5. In pursuance of his dream of his own house, Mr. Perpendicular booked a 2BHK
apartment in a real estate project called “Sapno ka Ghar” of “Ghar-Baar Housing Pvt.
Ltd.”, bearing Unit No. 1309, 13th Floor, Tower 4,Sapno ka Ghar, Sector 15,
Nirdhanbad, State of Nazrana. The super area/ saleable area of the apartment is 1260
square. Fit. i.e. 117.10 square. Meter.

6. On 25.07.2012, Mr. Perpendicular paid a booking amount of Rs. 6,45,853 to Ghar-

Baar Housing Private. Limited for the aforementioned apartment. On 12.10.2012, Mr.
Perpendicular signed a Standard Form Agreement for a total sale consideration of Rs.
26,78,060. He also took a personal loan of Rs. 15,00,000 for the payment of
instalments.

7. As per the Agreement to Sale, Ghar-Baar Housing Private Limited had to hand over
the physical possession within thirty-six months from the date of execution of the said
agreement, i.e. 12.10.2015. Ghar-Baar Housing Private Limited was further entitled to
a grace period of 6 months to accommodate for unforeseen delays beyond reasonable
control. The said grace period expired on 12.04.2016. However, the physical
possession could not be delivered even till date due to incompletion of the
construction of the apartment even after the payment of all the instalments as
contemplated in the Agreement to Sale.

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8. Mr. Perpendicular retired on 30.06.2015. By 30.12.2015, he vacated the government
accommodation as per the existing rules. He approached Ghar-Baar Housing Private
Limited for the delivery of possession of his apartment on 12.12.2015, whereby he
was assured that the delivery would be made within next four months, by 12.04.2016.
However, no such delivery was made and he was forced to live in a rented flat along
with his wife and his only son, Mr. Definite who was differently abled and was
permanently confined to a wheelchair. Due to certain unfavourable circumstances,
Mr. Perpendicular, along with his family, had to switch his accommodation thrice,
which was a considerably difficult task.

9. In the meanwhile, he filed a Consumer Complaint in the National Consumer Disputes

Redressal Commission on 05.12.2016 on the ground of deficiency in service. He
claimed a total amount of Rs. 2,06,07,790 which included compensation along with
interest on the Principle Amount advanced by him to Ghar-Baar Housing Private
Limited. The Respondent, Ghar-Baar Housing Private Limited challenged the
jurisdiction of National Consumer Disputes Redressal Commission on the ground that
after enactment of Real Estate Regulation Act, 2016, the National Consumer Disputes
Redressal Commission was stripped of its jurisdiction which now vested in the RERA
Authority. This contention was rejected by the National Consumer Disputes Redressal
Commission which held that it had jurisdiction to proceed with theComplaint Cases
filed by the Consumers and none of the provisions in the Real Estate Regulation Act,
2016 created any embargo or prohibited the jurisdiction of the Consumer Fora. Vide
order dated 22.03.2019, the Commission awarded an amount of Rs. 1,03,45,890 as
compensation for deficiency in service.

10. The Parliament of Republic of Basseypur enacted the Insolvency and Bankruptcy
Code,2016 with an object to consolidate and amend the laws relating to re-
organisation and insolvency resolution of corporate personality, partnership firms and
individuals in a time bound manner for maximisation of value of assets of such
persons, to promote entrepreneurship, availability of credit and balance the interests
of all thestakeholders including alteration in the order of priority of payment of
Government dues and to establish an Insolvency and Bankruptcy Board of
Basseypur, and for matters connected therewith or incidental thereto.

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 11. In the meanwhile, a corporate insolvency application under Section 7 of Insolvency
and Bankruptcy Code, 2016 was filed on 14.03.2019 against Ghar-Baar Housing
Private Limited, which was accepted on 18.03.2019. An Interim Resolution
Professional was appointed and a moratorium period was declared under Section 14
of the Insolvency and Bankruptcy Code, 2016 and public announcement for the same
was duly made by the adjudicating authority.

12. The Insolvency Resolution Professional, on behalf of Ghar-Baar Housing Private

Limited, preferred an appeal against the order of NCDRC to the Supreme Court of
Basseypur and challenged its validity on the ground that the moratorium granted
under IBC, 2016 prohibited the continuation of proceedings against the Corporate
Debtor. He further contended that National Consumer Disputes Redressal
Commission lacked the jurisdiction to entertain the complaints of home-buyers after
enactment of Real Estate Regulation Act, 2016.

13. The Supreme Court listed the matter for hearing on _____________.

14. The laws of Basseypur are in parimateria with those of India and all the references to
the State of Nazrana are to be construed vis-à-vis the State of Haryana.

NOTE:

 The issues and grounds in the proposition are not exhaustive. Additional arguments
can be advanced by the parties in favour of their case.
 The last date for submission of memorials shall be 19th August, 2019.
 Dates for oral arguments will be notified shortly.

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