Case Note & Summary
The Supreme Court disposed of multiple interlocutory applications in the ongoing Amrapali Group matter. In I.A. No.49238 of 2020, NBCC (I) Ltd., appointed as Project Management Consultant by the Court to complete incomplete projects, sought immunity from being impleaded in legal proceedings before other courts, tribunals, or authorities. NBCC reported that homebuyers were filing complaints in various forums, including the State Consumer Redressal Commission, Lucknow, seeking refunds or possession, and NBCC was forced to defend itself. The Court held that NBCC, working under its supervision, is immune from such actions and directed all courts, consumer commissions, and authorities not to permit impleadment of NBCC or issue summons to it. NBCC was directed to submit monthly progress reports to the Receiver, who would make them available on a blog/website for homebuyers. In I.A. No.29350 of 2020, Royalgolf Link City Projects Private Limited sought modification of the order dated 11.9.2019, which directed repayment of Rs.48.52 crores (principal amount received from Amrapali Group) along with 12% interest. The applicant cited financial hardship due to litigation, reduced sales, and high borrowing costs. The Court dismissed the application, holding that the money belonged to homebuyers and was diverted; imposing 12% interest was reasonable to prevent unjust enrichment. The interest was to be deposited within six weeks, failing which action would be taken for violation of the undertaking. In I.A. Nos.141062 of 2019 and 155624 of 2019, Noida and Greater Noida Authorities sought return of unused FAR to recover outstanding dues of Rs.2,191.38 crores and Rs.3,234.71 crores respectively. The Court permitted the Receiver to sell or transfer the unused FAR and directed the authorities to facilitate the sale. The applications were disposed of accordingly.
Headnote
A) Civil Procedure - Court-appointed Project Management Consultant - Immunity from Legal Proceedings - NBCC appointed by Supreme Court to complete Amrapali projects - Court held NBCC immune from being impleaded in any other court, tribunal, or authority as it works under Supreme Court supervision - Directions issued to courts/commissions not to permit impleadment or issue summons to NBCC (Paras 1-4).
B) Unjust Enrichment - Interest on Diverted Funds - Royalgolf Link City Projects Private Limited received Rs.48.52 crores from Amrapali Group - Court directed repayment with 12% interest - Hardship plea rejected as interest prevents unjust enrichment - Interest must be deposited within six weeks (Paras 5-7).
C) Property Law - Unused FAR - Recovery of Dues - Noida and Greater Noida Authorities sought return of unused FAR to recover outstanding dues - Court permitted Receiver to sell or transfer unused FAR to realize dues - Authorities directed to facilitate sale (Paras 8-11).
Issue of Consideration
Whether NBCC, appointed as Project Management Consultant by the Supreme Court, is immune from being impleaded in legal proceedings before other courts/authorities; whether Royalgolf Link City Projects Private Limited should be relieved from paying 12% interest on the principal amount of Rs.48.52 crores; whether unused FAR should be returned to Noida and Greater Noida Authorities for recovery of dues.
Final Decision
I.A. No.49238 of 2020 disposed of with directions that NBCC is immune from being impleaded in any other court, tribunal, or authority; courts/commissions not to permit impleadment or issue summons to NBCC; NBCC to submit monthly progress reports to Receiver. I.A. No.29350 of 2020 dismissed; Royalgolf Link City Projects Private Limited directed to deposit 12% interest within six weeks. I.A. Nos.141062 of 2019 and 155624 of 2019 disposed of with permission to Receiver to sell or transfer unused FAR; Noida and Greater Noida Authorities to facilitate sale.
Law Points
- Immunity from legal proceedings for court-appointed project management consultant
- Unjust enrichment
- Interest on diverted homebuyer funds
- Release of unused FAR for recovery of dues
Case Details
I.A.Nos. 49238 of 2020, 49239 of 2020, I.A.No.29350 of 2020, I.A.Nos. 166987 of 2019, I.A.No. 29699 of 2020, I.A.Nos.155624 of 2019, I.A.No.141062 of 2019 and I.A.No.49139 of 2020 in Writ Petition [C] No.940 of 2017
Shri Shyam Divan (for Royalgolf Link City Projects Private Limited)
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Nature of Litigation
Interlocutory applications in a writ petition concerning the Amrapali Group real estate projects, seeking directions regarding immunity for NBCC, modification of interest order, and release of unused FAR.
Remedy Sought
NBCC sought immunity from being impleaded in legal proceedings before other courts/authorities; Royalgolf Link City Projects Private Limited sought waiver of 12% interest on Rs.48.52 crores; Noida and Greater Noida Authorities sought return of unused FAR to recover dues.
Filing Reason
NBCC faced multiple complaints from homebuyers in various forums; Royalgolf Link City Projects Private Limited faced financial hardship in paying interest; Noida and Greater Noida Authorities sought to recover outstanding land dues.
Previous Decisions
Judgment dated 23.7.2019 in the main writ petition; order dated 11.9.2019 directing repayment of Rs.48.52 crores with 12% interest.
Issues
Whether NBCC, appointed as Project Management Consultant by the Supreme Court, is immune from being impleaded in legal proceedings before other courts/authorities?
Whether Royalgolf Link City Projects Private Limited should be relieved from paying 12% interest on the principal amount of Rs.48.52 crores?
Whether unused FAR should be returned to Noida and Greater Noida Authorities for recovery of dues?
Submissions/Arguments
NBCC submitted that it is not liable for any legal action as it works under the supervision of the Supreme Court and should be immune from being sued in other forums.
Royalgolf Link City Projects Private Limited argued that due to litigation, its goodwill was affected, construction slowed, and it faced hardship in paying 12% interest; it also noted that other entities were not directed to pay interest in the judgment dated 23.7.2019.
Noida and Greater Noida Authorities submitted that unused FAR should be returned to recover outstanding dues of Rs.2,191.38 crores and Rs.3,234.71 crores respectively.
Ratio Decidendi
A court-appointed project management consultant working under the supervision of the Supreme Court is immune from being impleaded in legal proceedings before other courts or authorities, as it is answerable only to the appointing court. Interest on diverted homebuyer funds is necessary to prevent unjust enrichment, and financial hardship of the entity that benefited from the funds is not a ground for waiver. Unused FAR can be sold or transferred by the Receiver to recover outstanding dues of development authorities.
Judgment Excerpts
NBCC is immune from any such actions, and we request the Courts/ Consumer Redressal Commission and other authorities not to permit impleadment of NBCC as respondent and not to issue summons to NBCC as they are doing the work under the supervision of this Court and are not answerable to any other court, tribunal, authorities.
We find the hardships, which are pointed out, are all commercial one and the Royalgolf Link City Projects Private Limited is bound to disgorge the advantage it received out of huge money of Rs.48.52 crores, which remained with it for a substantial period; otherwise, it would tantamount to unjust enrichment.
Learned Receiver shall be at liberty to invite applications from intending purchasers by issuing public notices.
Procedural History
The main writ petition (W.P.(C) No.940 of 2017) was disposed of by judgment dated 23.7.2019. Subsequently, various interlocutory applications were filed, including I.A. No.49238 of 2020 by NBCC seeking immunity, I.A. No.29350 of 2020 by Royalgolf Link City Projects Private Limited seeking modification of interest order, and I.A. Nos.141062 of 2019 and 155624 of 2019 by Noida and Greater Noida Authorities seeking return of unused FAR. These applications were heard and disposed of by the present order.
