Right to Shelter - The Legal Chamber

This Supreme Court judgment clarifies the distinction between genuine homebuyers and speculative investors under the Insolvency and Bankruptcy Code, 2016. It holds that allottees with agreements structured for assured returns or buy-back clauses, without a genuine intent to possess the property, are speculative investors. Such investors are barred from initiating Corporate Insolvency Resolution Process under Section 7 of the IBC, as the Code is not a recovery mechanism for speculative investments. Facts Of The Case: This case consolidates four civil appeals concerning the initiation of Corporate Insolvency Resolution Process (CIRP) against real estate developers by individual allottees. The primary appellant, Mansi Brar Fernandes, entered into a Memorandum of Understanding (MoU) with Gay...

In a significant ruling, the Supreme Court issued comprehensive directives for all Beggars' Homes across India, mandating minimum standards for healthcare, sanitation, nutrition, and infrastructure. The judgment affirms that such institutions are a constitutional trust and that inhumane conditions violate the fundamental right to life with dignity under Article 21, requiring a shift from a punitive to a rehabilitative model. Facts Of The Case: The case originated from a Public Interest Litigation filed after news reports in May 2000 exposed a cholera and gastroenteritis outbreak at the Beggars’ Home in Lampur, Delhi, leading to multiple inmate deaths. The reports alleged that contaminated drinking water was the cause, a fact later confirmed by a magisterial inquiry which found faecal con...

Tag: Right to Shelter

Homebuyer Alert: Supreme Court Clarifies When a Real Estate Investment Becomes “Speculative”