Overview

• A bench of Justices J B Pardiwala and R Mahadevan declared shelter a facet of Article 21 while dismissing challenges to NCLAT orders that rejected speculative buyers’ claims.
• Twelve binding directions include strengthening NCLT and NCLAT by filling vacancies on a war footing and constituting additional benches focused on real estate insolvencies.
• The Centre must file a compliance report within three months on tribunal infrastructure upgrades, with the judgment circulated to the cabinet secretary and state chief secretaries for action.
• Project-wise insolvency resolution is mandated with safeguards for genuine allottees, including screening out speculative claims, escrowed inflows for nascent projects, and representation for homebuyers on committees of creditors.
• The court asked the government to consider a NARCL-backed revival fund, expansion of the SWAMIH fund with CAG audits, and a NARCL-style entity to take over and complete stalled projects, with unsold stock potentially routed to affordable housing schemes.