RERA Can Override Companies Act
The Rajasthan Real Estate Regulatory Authority has said that a winding up order on a company will not bar the proceedings of the Real Estate (Regulation and Development) Act, 2016. A winding up order issued by court, forces an insolvent company into compulsory liquidation. The court appoints a liquidator to facilitate the liquidation wherein all assets are liquidated so as to pay the creditors. 
 
RERA came into force on 1st May 2016, to regulate and promote the interest of the consumers in real estate sector. It also facilitates speedy dispute redressal mechanism for the aggrieved.
 
The current case was in relation to an application filed by the real estate builder seeking a stay on the proceedings of Delhi High Court which had appointed a liquidator for the builder while the proceedings under RERA were still pending. 
 
The builder argued that as per Section 279 of the Companies Act, no suit or legal proceedings can be started or continued against the company after the winding up order is being passed. It also added further that it could be done only with the permission of National Company Law Tribunal.
 
But the Authority observed that no winding up order has been passed. It also held that even in case winding up order is passed, it will not impact the proceedings of RERA.
 
The provisions of Section 31 of RERA will will prevail over Section 279 of Companies Act since the former is a special act of Parliament and came into effect after the Companies Act,2013.
 
  • Like this story? Get our top stories by email.

    User 

    We are listening!

    Solve the equation and enter in the Captcha field.
      Loading...
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email
    Close

    To continue


    Please
    Sign Up or Sign In
    with

    Email

    BUY NOW

    online financial advisory
    Pathbreakers
    Pathbreakers 1 & Pathbreakers 2 contain deep insights, unknown facts and captivating events in the life of 51 top achievers, in their own words.
    online financia advisory
    The Scam
    28 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
    Moneylife Online Magazine
    Fiercely independent and pro-consumer information on personal finance
    financial magazines online
    Stockletters in 4 Flavours
    Outstanding research that beats mutual funds year after year
    financial magazines in india
    MAS: Complete Online Financial Advisory
    (Includes Moneylife Online Magazine)