An Adjudicating Officer under the Real Estate (Regulation and Development) Act, 2016 is appointed under Section 71 as the first point of contact in case of disputes. The Adjudicating Officer is a judicial authority with powers of summoning, enforcing attendance, ask for evidence and documents. The Adjudicating Officer must dispose of such applications within 60 days, which can be extended with recording of reasons. The Adjudicating Officer has the power to order refunds, and compensation with interest, and determine the appropriate amount.
Allottee
Under the Real Estate (Regulation and Development) Act, 2016, anyone who buys a property in a real estate project is known as an Allottee. As per Section 2(d), “Allottee” refers to the person who has been given, sold, or transferred a plot, apartment, or building by the promoter. This includes someone who later acquires this allotment through sale or transfer. Alotte includes holders of long-term leases and such leasehold agreements are not considered for rent. However, it doesn’t include someone who receives the property on rent. The rights and duties of Allottees are explained in Chapter VI of the Act. Additionally, according to Section 19(9), every allottee must form an association, society, or cooperative society with other allottees, or a federation of them. These associations or societies can file complaints as a “person” before the Adjudicating Authority. Allottees can unilaterally cancel a booking and can demand a refund within the prescribed period.
Amenities
Real Estate (Regulation and Development) Act, 2016 does not define amenities. However, in the context of property law, amenities typically encompass facilities such as parking areas, laundry services, gymnasiums, clubs, security provisions, and domestic assistance. While the law does not mandate specific amenities beyond fundamental public provisions like staircases and communal areas, prospective homebuyers need to scrutinize the amenities outlined in the Builder Buyer Agreement. Should developers deviate from the approved plans, purchasers have legal recourse to hold them accountable. Nevertheless, discrepancies between the initially proposed amenities in the brochure and those officially sanctioned usually do not result in liability for the builder.
Assignment
Assignment means transferring certain rights to a third party. In insurance, a policyholder can assign (assignor) the benefits and duties arising from the policy to any person (assignee). Usually, such an assignment is used as a security so the assignee can recover the amount in case of failure. For example, a person A can assign his life insurance to the bank while taking a home loan, so in case of a default, the bank can recover the amount. The Transfer of Property Act, 1882, and the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, permit the assignment of debt. This implies that the assignee inherits the same rights as the assignor and can pursue the debt legally. For example, a Non-Banking Financial Corporation (NBFC) may assign its debt to an Asset Reconstruction Company (ARC), granting the ARC the authority to utilize SARFAESI provisions to enforce the debt. Such assignments are legally valid. Under the Insolvency and Bankruptcy Code, 2016, an assignee of a financial creditor will step in the shoes of the financial creditor and sit in the Committee of Creditors. [Housing Development Finance Corporation Ltd. v. Siti Networks Ltd. [2023] 147 taxmann.com 350 (NCLT – Mum.)] Under the Real Estate (Regulation and Development) Act, 2016, a bank becomes an assignee of the promoter by causing the construction of a real estate project and therefore it also becomes a promoter under Section 2(zk)(i) and becomes amenable to the jurisdiction of the adjudicating authority under the Real Estate (Regulation and Development) Act, 2016. [Union Bank of India v. Rajasthan Real Estate Regulatory Authority, 2022 SCC OnLine SC 1885]
Assured Returns
Assured Returns are when builders promise to give homebuyers a fixed amount of money on their investment in the property. Such interest rates are provided in the Builder Buyer Agreements [BBA]. Such assured returns were offered as a security to the buyers until actual possession of the property. The Assured Return scheme was the reason for the inclusion of Real Estate Allottees as Financial Creditors within the Insolvency and Bankruptcy Code, 2016. The Supreme Court in Pioneer Urban Land and Infrastructure Ltd. v. Union of India, (2019) 8 SCC 416 noted that such Assured Return schemes have “commercial effect of borrowing” and therefore is a financial debt.
B
Bankruptcy
Under the Insolvency and Bankruptcy Code of 2016, bankruptcy occurs when debtors are unable to repay debts, leading to the management of assets for creditor repayment. This is distinct from liquidation, which involves selling assets to settle debts, and insolvency, which refers to the broader inability to meet financial obligations. Bankruptcy triggers a legal process for either restructuring debts or selling assets to repay creditors. It’s a specific legal status provided to insolvent debtors under the IBC. If restructuring isn’t possible, liquidation typically follows bankruptcy. Insolvency denotes financial distress in general, while bankruptcy specifically denotes a legal consequence under the IBC.
Beneficiary
In insurance law, a beneficiary is someone chosen to get the benefits from an insurance policy pon the occurrence of an insured event, such as death, injury, or damage. The beneficiary is typically named by the policyholder at the time of purchasing the insurance policy. According to Section 39 of the Insurance Act, 1938, if the policyholder doesn’t name a beneficiary, the insured amount goes to their legal heirs as per the terms of the policy. But if there’s a nomination, the money goes to the nominee(s).
Boundary
In Real Estate, boundary refers to the demarcation or limits of a real estate property, delineating its extent and borders. It encompasses the physical boundaries of a plot, building, or development, including walls, fences, or natural landmarks. RERA regulations require developers to accurately define and disclose the boundaries of properties to buyers. The boundary specifications provided by developers must align with the sanctioned plan to receive completion certificate. Any changes or deviations in the boundaries must be duly notified to the RERA authorities and buyers.
Broker
Under the Real Estate (Regulation and Development) Act (RERA), a broker is an intermediary who facilitates the buying, selling, or renting of real estate properties. Brokers act as liaisons between buyers and sellers, helping with negotiations and paperwork. According to Section 9 of the RERA Act, real estate agents must register with RERA to engage in activities related to facilitating property transactions. Additionally, brokers are obligated to adhere to the code of conduct prescribed by RERA, including maintaining records, providing accurate information, and avoiding unfair trade practices. Non-compliance with RERA regulations may result in penalties or suspension of the broker’s registration.
Builder-Buyer Agreement
Under the Real Estate (Regulation and Development) Act (RERA), the Builder-Buyer Agreement is a legal contract between a real estate developer (the builder) and a homebuyer. It is governed by Section 4 of RERA. This agreement outlines the terms and conditions of the property purchase, including the price, possession date, construction timeline, penalties for delays, specifications of the property, and amenities promised by the builder. It also includes clauses regarding payment schedules, project completion, dispute resolution mechanisms, and any other relevant provisions to protect the interests of both parties. In Pioneer Urban Land & Infrastructure Ltd. v. Govindan Raghavan, (2019) 5 SCC 725, it was held that one-sided clauses in Builder-Buyer Agreements amount to unfair trade practice and are violative of Section 2(r) of Consumer Protection Act, 1986.
Building
Under Real Estate (Regulation and Development) Act (RERA), a “building” encompasses any structure intended for residential, commercial, or mixed-use purposes, including apartments, offices, shops, or complexes. Section 2(j) defines Building. It includes both new constructions and ongoing projects. RERA mandates registration of all buildings with the respective state authorities to ensure transparency and accountability in the real estate sector. Buildings under RERA must adhere to quality standards, timelines, and disclosure requirements specified by the Act.
Built-up area
Built-up area under RERA refers to the total area covered by a building, including the carpet area, walls, balconies, and common areas like corridors and lobbies. It encompasses the entire space within the walls of a building, including all structural components. The built-up area is calculated by adding the carpet area, which is the usable floor area within the walls, to the area occupied by walls and other structural elements.
Built-up Area = Carpet area + Wall area + Terrace area + Balcony area + Exterior living area
C
Capital Assets
Section 2(14) of the Income Tax Act 1961 defines Capital Asset as any property held by an assessee, whether connected to their business or profession, and securities held by Foreign Institutional Investors under SEBI regulations. However, it specifically excludes stock-in-trade, consumable stores, raw materials for business purposes, and personal effects like jewellery, archaeological collections, drawings, paintings, sculptures, and works of art. Additionally, it excludes agricultural land situated in specified urban areas based on population criteria, certain government-issued bonds, and gold deposit schemes. The definition clarifies that “property” also encompasses rights in or related to an Indian company, such as management or control rights.
Capital Gains Tax
Capital Gains Tax under the Income Tax Act 1961 refers to the tax levied on the profit earned from the sale or transfer of capital assets. When a capital asset is sold or transferred, the difference between the sale price and the cost of acquisition (purchase price) is considered the capital gain. This gain is subject to taxation based on the duration for which the asset was held (short-term or long-term) and the applicable tax rates specified by the Income Tax Act. In the case of Commissioner Of Income Tax V. KTC Tyres, (2004) 185CompCas17(SC) the Supreme Court rejected the idea that capital gains tax owed by a company to the government should be treated as expenses of liquidation. The court ruled against prioritizing tax payments over the dues owed to employees and secured creditors during the liquidation process. It emphasized that revenue taxes, like capital gains tax, do not qualify as liquidation expenses under the law.
Carpet area
Carpet area refers to the actual usable space within a property, excluding the thickness of walls, spaces under service shafts, balconies or verandahs, and private open terrace area. It represents the area on which one can place a carpet, providing a realistic estimate of the space available for living. To calculate the carpet area, you need to measure the internal dimensions of a property: measure the length and width of each room; multiply the length and width of each room and calculate the area of the room; sum up the area of all rooms.
Circle Rates
Circle rates are also known as guidance values, collector rates, or ready reckoner rates. They refer to the minimum valuation at which a property can be registered in the records of the government for taxation purposes. These rates are set by state governments and vary based on the location, type, and other factors of the property. Circle rates serve as a benchmark to prevent the undervaluation of properties during transactions and ensure fair taxation. Circle rates are available on the local state land revenue websites.
Claim
As per Section 3(6) of the Insolvency and Bankruptcy Code 2016, claim means – (a) a right to payment, whether or not such right is reduced to judgment, fixed, disputed, undisputed, legal, equitable, secured, or unsecured; (b) right to remedy for breach of contract under any law for the time being in force, if such breach gives rise to a right to payment, whether or not such right is reduced to judgment, fixed, matured, unmatured, disputed, undisputed, secured or unsecured. The Interim Resolution Professional/Resolution Professional must collate and verify the claims of the creditors. IBBI (Insolvency Resolution Process for Corporate Persons) (Second Amendment) Regulations 2023 provides for 90 days to submit claims to the RP.
Commencement certificate
Section 2(m) of the Real Estate (Regulation and Development) Act 2016 defines a commencement certificate or building permit or construction permit, by whatever name called issued by the competent authority to allow or permit the promoter to begin development works on an immovable property, as per the sanctioned plan.
Commercial Property
In India, commercial property refers to real estate intended primarily for business, commercial, or income-generating purposes rather than residential use. This includes properties such as office buildings, retail spaces, industrial units, warehouses, and hotels. The definition is rooted in the Transfer of Property Act 1882, which broadly defines immovable property to encompass land, buildings, and attachments to the earth. Commercial properties must comply with provisions under the Income Tax Act 1961, which governs the taxation of income generated from such properties. Additionally, regulations under the Real Estate (Regulation and Development) Act 2016 ensure transparency and consumer protection in commercial real estate transactions. In National Insurance Co. Ltd. v. Harsolia Motors, (2023) 8 SCC 362, it was held that to identify the commercial nature of the property, the primary indicator is the purchaser’s intent regarding its usage. The onus of proof that the property was bought for commercial purposes lies on the seller/provider as noted in Shriram Chits (India) (P) Ltd. v. Raghachand Associates, 2024 SCC OnLine SC 851.
Committee of Creditors
The Committee of Creditors (CoC) under the Insolvency and Bankruptcy Code 2016 (IBC) consists of financial creditors of the insolvent company, as defined in Section 21 of the IBC. This committee is tasked with crucial functions throughout the insolvency resolution process. Section 24 of the IBC empowers the CoC to appoint an insolvency professional to manage the affairs of the company during insolvency proceedings. One of its primary roles, under Section 25, is to evaluate and vote on resolution plans submitted by prospective resolution applicants, ensuring they maximize the value of the company’s assets. The CoC also negotiates the terms of these plans (Section 30), supervises the insolvency professional’s actions (Section 28), and oversees the distribution of funds among creditors once a plan is approved (Section 53). Ultimately, the CoC acts as a pivotal decision-making body, safeguarding the interests of creditors while aiming to resolve insolvency cases efficiently and fairly. The power of the CoC is relatively superior since their “commercial wisdom” bars any excessive interference in their decisions. Despite the Supreme Court’s insistence that all stakeholders’ interests must be considered, operational creditors often find themselves marginalized, facing significant losses in insolvency proceedings. However, recent judgments have upheld the CoC’s commercial wisdom but have started to constrain it, such as in M.K. Rajagopalan v. Periasamy Palani Gounder, (2024) 1 SCC 42, emphasizing that such wisdom must adhere to legal provisions and be transparently deliberated upon.
Completion Certificate
Section 3(q) of the Real Estate (Regulation and Development) Act 2016 defines the completion certificate, or such other certificate, by whatever name called, issued by the competent authority certifying that the real estate project has been developed according to the sanctioned plan, layout plan and specifications, as approved by the competent authority under the local laws. The Punjab and Haryana High Court in the case of M/s Experion Developers Private Limited v State of HaryanaCWP No. 7852 of 2022, held that without obtaining a completion certificate for the project before the Act came into effect on 01.05.2017, the petitioner was obligated to register with the respondent authority. Merely applying for or obtaining an occupancy certificate under the Haryana Building Code, 2017, does not exempt the petitioner from the authority’s jurisdiction if a completion certificate has not been obtained.
Conveyance deed
In India, a conveyance deed is a legal document used to transfer ownership of immovable property from one party to another. It is executed after the sale of the property has been finalized through an agreement between the buyer and seller. The conveyance deed typically includes details such as the identities of the parties involved, a description of the property being transferred, the sale consideration, and any conditions or covenants agreed upon. This document serves as proof of ownership and is registered with the local Sub-Registrar under the Registration Act 1908, to ensure its validity and enforceability against third parties.
Corporate Debtor
Section 3(8) of the Insolvency and Bankruptcy Code 2016 (IBC) defines Corporate Debtor as any person who owes a debt to another. Further, Section 3(23) provides that the person includes (a) an individual; a Hindu Undivided Family; a company; a trust; a partnership; a limited liability partnership; and any other entity established under a statute.
Corporate Insolvency Resolution Process
The Corporate Insolvency Resolution Process (CIRP) is a key part of the Insolvency and Bankruptcy Code, 2016 (IBC) designed to handle corporate insolvency in an organized and timely way. It helps keep businesses running while managing financial troubles and defaults. CIRP follows specific steps that involve creditors, appointing resolution professionals, and creating workable resolution plans to resolve the issues. The process can be started by financial creditors, operational creditors, and corporate applicants when a company can’t repay debts over a certain amount. Initially, this amount was INR 1 lakh but was increased to INR 1 crore in March 2020. In 2018, the IBC was amended to include a new rule under Section 5(8)(f). This rule recognized homebuyers who paid for units in real estate projects as “financial creditors.” This amendment gave homebuyers the power to start the CIRP against developers who failed to deliver on their promises. The IBC was further amended in 2020 to include a new rule in Section 7. This rule sets a minimum requirement for homebuyers to start CIRP against developers who fail to deliver. It states that either at least one hundred homebuyers from the same project, or not less than ten percent of all homebuyers in that project, whichever is lower, can file a CIRP petition.
D
DDJAY
Deen Dayal Jan Awas Yojna is an affordable housing scheme initiated by the Government of Haryana to cater to the housing needs of the economically weaker sections and low-income groups in the state. Launched to promote the development of high-density plotted colonies in low and medium potential towns, the scheme aims to provide housing for all by offering plots ranging from 50 to 150 square meters. The initiative focuses on facilitating the availability of affordable housing with essential amenities and infrastructure, ensuring sustainable urban development. By encouraging private sector participation, DDJAY aims to address the housing deficit, improve living conditions, and contribute to the overall socio-economic growth of the region. Visit https://deendayaljanavasyojna.org/
DTCP
The Department of Town and Country Planning oversees the planning, development, management, and enhancement of both urban and rural areas. Its mission includes creating regional and master plans for efficient land use and sustainable urban growth, reviewing existing plans to meet current public needs, and enhancing urban infrastructure. Its functions involve designating planning areas, forming planning authorities, approving layouts and building plans, enforcing statutory requirements, and supporting local bodies with planning permissions. Visit https://tcpharyana.gov.in/
Debtor
Under the Insolvency and Bankruptcy Code 2016, a “Debtor” refers to an individual or entity that owes a debt to another party, i.e., the creditor.
Default
Under the Insolvency and Bankruptcy Code, 2016, Default means failing to pay back a debt when it is due. This is important because it starts the process for dealing with insolvency. When a default happens, creditors can apply to the National Company Law Tribunal to start the Corporate Insolvency Resolution Process. This process helps either to resolve the debt issue or to liquidate the debtor’s assets in an organized manner. As per Innoventive Industries Limited v. ICICI Bank and Another (2018) 1 SCC 407, the adjudicating authority has 14 days to verify a default based on records or evidence from the financial creditor. If a default is confirmed under Section 7(5), the corporate debtor can argue the debt isn’t due. If the authority is satisfied a default occurred, it must admit the application unless it’s incomplete, giving the applicant 7 days to correct any issues. The authority then informs both parties of its decision within 7 days.
Dispute
The IBC’s definition of dispute is crucial in the context of operational debts. Section 5(6) broadly defines it to include disagreements about the debt’s existence, amount, quality of goods/services, or contractual breaches. In the Mobilox Innovations (P) Ltd. v. Kirusa Software (P) Ltd., (2018) 1 SCC 353 [Mobilox], the SC clarified that a dispute doesn’t need to be a formal legal proceeding, but should be a genuine disagreement requiring further investigation. The corporate debtor has 10 days from receiving this notice to inform the creditor about any existing dispute. In Mobilox, the SC emphasized the importance of the demand notice process. It ruled that when a corporate debtor receives a demand notice, they can either pay the debt or dispute it. If they choose to dispute, they must show that the disagreement existed before receiving the notice – they can’t just create a dispute to avoid payment. The Court also clarified that in Section 8(2)(a), “and” should be read as “or,” allowing disputes to be considered even if not yet in formal legal proceedings. This interpretation prevents operational creditors from prematurely pushing companies into insolvency and gives corporate debtors a fair chance to raise legitimate disputes.
E
Easement Rights
In India, easements, governed by the Indian Easements Act, 1882, allow one party to use another’s property for specific purposes like access or utilities and full enjoyment of the property. Easements can be created by agreement, long-term use, or necessity. Under Clause Section 26(3) of the Indian Easements Act, the right of easement must be enjoyed for 20 years in the case of private property and 60 years for government property. According to Section 37 of the Limitation Act, 1960 a person claiming the right of easement must file a suit within three years of being obstructed from using this right. The Supreme Court in Manisha Mahendra Gala vs. Shalini Bhagwan Avatramani ruled that a claimant cannot assert an easementary right by necessity over dominnat’s property if there is an alternative route available apart from the claimed easement.
Encumbrance
Generally, an encumbrance refers to any claim, lien, charge, or liability attached to and binding real property. It could include mortgages, easements, restrictions, unpaid property taxes, or other claims that could affect the transfer of ownership. To remove an encumbrance from a property at the time of sale, one must can apply to the court under Section 57 of the Transfer of Property Act, 1882. The court will ask to deposit a sum of money sufficient to cover the encumbrance. Once the money is deposited, the court can declare the property free from the encumbrance, allowing the sale. This ensures that the buyer gets a clear title to the property.
Escrow Account
Escrow accounts are financial arrangements where a neutral third party, known as the escrow agent or trustee, holds assets, usually money, on behalf of two parties involved in a transaction. This arrangement ensures that neither party is at risk of losing out if the other party fails to meet their obligations. The escrow agent only releases the assets when specific conditions agreed upon by both parties are met. These are used in complex transactions such as building contracts, loan contracts, procurement contracts, etc.
Ex-gratia
Ex gratia payments in insurance for natural disasters are voluntary payments made by insurance companies to the families of insured individuals who passed away due to natural calamities like floods or earthquakes. These payments are made even if the insurance policy doesn’t specifically cover that type of disaster. They’re meant to help families cope with sudden financial hardships caused by the loss of their loved ones, showing compassion and support beyond what’s required by the insurance contract.
F
Fair Market Value
Fair Market Value is the price at which property would change hands between a willing buyer and seller, both having reasonable knowledge of relevant facts and neither being forced to buy or sell. It’s used in various legal and tax contexts to determine property value. The Income Tax Act, 1961 provides methods for calculating Fair Market Value, with recent updates in 2023 introducing new methods for unlisted shares.
Financial Creditor
Under the Insolvency and Bankruptcy Code, 2016, a Financial Creditor is any person to whom a financial debt is owed. This includes banks, financial institutions, and, notably, homebuyers in real estate projects. The Supreme Court, in Pioneer Urban Land and Infrastructure Ltd v. Union of India (2019), upheld the constitutional validity of treating homebuyers as financial creditors. This status gives them specific rights in insolvency proceedings, including representation in the Committee of Creditors.
Financial Debt
As defined in the Insolvency and Bankruptcy Code, 2016, Financial Debt is a debt along with interest, disbursed against the consideration for the time value of money. It includes money borrowed, credit facilities, and any amount raised under any other transaction having the commercial effect of borrowing. The Supreme Court, in Anuj Jain Interim Resolution Professional for Jaypee Infratech Limited v. Axis Bank Limited (2020), provided clarity on interpreting financial debt under the IBC, emphasizing the importance of the “time value of money” concept.
Floor Space Index (FSI)
FSI, also called Floor Area Ratio (FAR), is a measure used in urban planning to control building density. It’s the ratio of a building’s total floor area to the size of the land it’s built on. For example, if a 1000 sq.m. plot has an FSI of 2, you can build up to 2000 sq.m. of floor area. Local authorities set FSI limits to manage urban development. Recent updates have seen some cities, like Mumbai, increase FSI to promote vertical growth. The Supreme Court, in Municipal Corporation of Greater Mumbai v. Kohinoor CTNL Infrastructure Co. Pvt. Ltd. (2014), affirmed that FSI is a valuable right that local authorities can regulate.
Freehold
Freehold refers to absolute ownership of real property, giving the owner full rights to control, use, and transfer the property as desired. It’s the highest form of property ownership in India. The importance of proper documentation in freehold property transactions was highlighted by the Supreme Court in Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana (2012). Freehold ownership contrasts with leasehold, where the property is held for a specific period under certain conditions.
Force Majeure
Force Majeure refers to unforeseeable circumstances that prevent someone from fulfilling a contract. It’s often included as a clause in contracts to excuse non-performance due to events beyond the parties’ control, such as natural disasters or pandemics. The COVID-19 pandemic led to numerous force majeure claims, prompting the Ministry of Finance to clarify its applicability in government contracts in 2020. In Energy Watchdog v. CERC (2017), the Supreme Court provided guidelines for interpreting force majeure clauses, emphasizing that they should be narrowly construed.
Fraudulent Transactions
Fraudulent Transactions are those entered into with intent to defraud creditors or for a fraudulent purpose. Under Indian law, such transactions can be reversed by courts and may lead to criminal charges. The Prevention of Money Laundering Act was amended in 2023 to expand the definition of proceeds of crime, impacting the scope of fraudulent transactions. In Serious Fraud Investigation Office v. Nittin Johari (2019), the Supreme Court emphasized the need for thorough investigation in cases of alleged fraudulent transactions.
Foreclosure
Foreclosure is a legal process by which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as collateral. In India, this process is governed by laws such as the SARFAESI Act, 2002. In 2021, the RBI introduced a resolution framework for COVID-19 related stress, which included guidelines on foreclosure. The Supreme Court, in Authorised Officer, State Bank of Travancore v. Mathew K.C. (2018), clarified the rights of borrowers in foreclosure proceedings under the SARFAESI Act, emphasizing the need for fair procedures.
G
Gift Tax
Gift Tax is a tax imposed on the transfer of property or money from one individual to another without receiving anything in return. Under the Income Tax Act, 1961, any gift exceeding a specified threshold is subject to tax, and the recipient is liable to pay it. The law aims to prevent tax evasion through gifting assets to avoid income tax. Recently, the Gujarat High Court in Jigar Jashwantlal Shah [TS-598-HC-2023(GUJ)] ruled that gift tax provisions are not applicable to right shares.
Group of Companies
A Group of Companies refers to a collection of parent and subsidiary companies that operate under a unified corporate structure. This term is often used in legal contexts to determine liability, financial obligations, and regulatory compliance across different entities within the group. Recently, the Supreme Court in Cox v. Kings, 2023 accepted the legitimacy of the Group of Companies Doctrine in reference to arbitration. The SC held that the following four factors must be met: (a) mutual intent of parties; (b) commonality of the subject-matter; (c) composite nature of the transaction; and (e) performance of the contract..
Guarantor
A Guarantor is an individual or entity that agrees to take responsibility for another party’s debt or obligation if that party fails to fulfill it. In loan agreements, a guarantor provides additional security for lenders, ensuring that they can recover amounts owed even if the primary borrower defaults. The rights and responsibilities of guarantors are governed by contract law. In Laxmi Pat Surana Vs. Union Bank of India, (2021) 8 SCC 481 the Supreme Court held that a financial creditor can initiate the Corporate Insolvency Resolution Process against both a corporate debtor and its corporate guarantor under the Insolvency and Bankruptcy Code.
H
Housing Authorities
Housing Authorities are governmental or quasi-governmental organizations responsible for overseeing public housing programs and ensuring affordable housing availability for low-income individuals and families. They play a critical role in urban planning, development, and management of housing projects.
Homebuyer
A Homebuyer is an individual or entity that purchases residential property for personal use or investment purposes. Under the Real Estate (Regulation and Development) Act, 2016, homebuyers are recognized as consumers with specific rights regarding property transactions, including timely possession and quality construction. The rights of homebuyers were emphasized in Pioneer Urban Land and Infrastructure Ltd. v. Union of India (2019), where the Supreme Court ruled on issues related to delayed possession and financial obligations of developers towards homebuyers and accepted the classification of homebuyers as financial creditors under the IBC, 2016.
