Case Title: Sandeep Kumar Jain v. Anil Tayal
The National Company Law Appellate Tribunal, adjudicating in the case held that a single homebuyer is compelled to comply with the decision of homebuyers as a class.
In this case, the bench was hearing the appeal filed by two homebuyers against the order of the NCLT, as the aforementioned homebuyers filed two separate intervention applications before the same. It was argued by the aforementioned two home buyers that their authorised representative was not being provided, coupled with the fact that their interests were not being safeguarded.
The NCLT, through its order dated February 28, 2022, rejected the intervention applications on the ground that there is already a class of homebuyers represented in the matter. Aggrieved by the order of NCLT, the two homebuyers, i.e., the appellant, challenged the same before NCLAT.
One of the primary issues, in this case, was whether every individual homebuyer is bound by the decision of homebuyers as a class.
The National Company Appellate Law Tribunal analysed the arguments of the appellant and opined that every homebuyer is compelled to abide by the decision taken by the authorised representative of the class of homebuyers. Furthermore, it was observed by the NCLAT that the Resolution Professionals and NCLT can be approached for the concerned clarifications and concerns in this regard. The NCLAT further concluded that there was no merit in the appeal as the NCLT did not make any mistakes in rejecting the appellant's intervention application.
The bench further remarked after taking stakes of the parties on the record and held that, "We are of the view that the appellant as a homebuyer has to go with the class of homebuyers, and the decision taken by the class of homebuyers is binding." In the event of any difficulty, it is always open for the authorised representative to approach the resolution professional and adjudicating authority, if so required and further dismissed the appeal as under, "We are of the view that the adjudicating authority did not commit any error in rejecting the intervention application of the appellant." There is no merit in the appeal. "The appeal is dismissed."