- The limitation for filing an appeal starts from the date of the order if it is passed in the presence of the respective legal counsels for the parties: National Company Law Appellate Tribunal (“NCLAT”) [Supreme Construction Developers Pvt Ltd v Puranik Builders Ltd]. The NCLAT has ruled that when both parties’ counsels are present during the pronouncement of the order, the time limit for filing an appeal with the NCLAT against that order begins from the date of the order and not from the date when it was uploaded on the National Company Law Tribunal’s (“NCLT”) website.
- A Memorandum of Understanding (“MoU”) and an extract of ledger are insufficient to establish a financial debt: NCLAT [D S Kulkarni & Associates v Manoj Kumar Aggarwal]. The NCLAT has held that a MoU and an extract of ledger are not sufficient to establish a financial debt under the IBC. The claim of the appellant that the MoU establishes a financial debt under Section 5(8)(f) of the IBC was rejected by the NCLAT. As per Section 5(8)(f), a financial debt includes any amount raised under any other transaction, including any forward sale or purchase agreement, having the commercial effect of a borrowing.
Property Law in India
Property law in India is a vast subject. It is a study under various statutes like The Transfer of Property Act, The Indian Contract Act, Registration Act, Stamp Act, RERA, Land Revenue Code, Land Acquisition laws, etc. Apart from these, for NRIs, special rules and regulations are provided under FEMA by RBI.
Laws in India are governed by both State-specific laws and central laws. This is because, according to the Constitution of India, ‘Land’ falls under the State List while ‘Transfer of property and registration of deeds and documents’ falls under the Concurrent List. Due to this, the process of buying and registering a property can seem complicated.
REAL ESTATE LAW:
The Real Estate (Regulation and Development) Act, 2016, and the body under it, the Real Estate Regulatory Authority or RERA govern the development, marketing, and sale of real estate projects.
It was established with the aim to protect the interests of the consumers in the real estate sector. It established a mechanism for speedy dispute redressal through the Real Estate Regulatory Authority and the Appellate Tribunal. It also mandates the compulsory registration of projects and key players in the real estate sector.
Indian real estate law does not envisage a system of land registration. Rather, the concept of registration is related to the documents under which the title is transferred from seller to buyer. Any instruments and documents relating to land are required to be registered in accordance with the Registration Act, 1908. The system of registration of documents is well defined in India with robust government machinery that registers and maintains these documents.
Transfer of Property Act, 1882
Before the Transfer of Property Act came into force the laws related to property was governed by the principles of English Law and Equity. The transfer of property in India is regulated by the Transfer of property act, 1882 which was enforceable in India from July 1, 1882.
According to the Transfer of Property Act, 1882 ‘transfer of property’ is an act by which a person transmits the property to another person where the person may include an individual, association, company or body of individuals and the property transferred can be both movable and immovable.
As per the Transfer of Property Act, a ‘sale’ is the transfer of ownership in exchange for a price paid or promised or a price part-paid and part-promised.
Though the seller discloses all information about the property as well as his title, the buyer should exercise due diligence and check the title of the seller. Under Section 55 of the Act, the seller has a duty to disclose to the buyer any material defect in the property or in the seller’s title of which the seller is, and the buyer is not aware and which the buyer could not, with reasonable care, discover. Misrepresentation gives the buyer the right to compensation or indemnity from the seller.