The Supreme Court has ruled that speculative investors cannot use Section 7 of the Insolvency and Bankruptcy Code (IBC) to initiate insolvency proceedings against real estate developers. Affirming the National Company Law Appellate Tribunal’s decision, a Bench of Justices J.B. Pardiwala and R. Mahadevan held that the IBC’s objective is to revive distressed companies and protect genuine homebuyers, not speculative actors seeking assured returns. The Court identified indicators of speculation such as buyback clauses, refusal of possession, high-interest refund demands, and deviations from the RERA Model Agreement, directing such investors to approach RERA, consumer fora, or civil courts instead.
The Supreme Court on Friday declined to entertain a writ petition filed under Article 32 seeking restoration of a blocked WhatsApp account, holding that there is no fundamental right to use the messaging app. A bench of Justices Vikram Nath and Sandeep Mehta questioned the maintainability of the plea and suggested users could opt for indigenous alternatives such as Arattai by Zoho. The petitioner, a doctor who relied on WhatsApp professionally, later withdrew the plea, with liberty to pursue civil or other legal remedies, amid wider discussions on digital platform accountability and user rights in India.
The Supreme Court of India, while closing the Salwa Judum case, held that passing a law by Parliament or a State Legislature cannot by itself amount to contempt of court. The Bench of Justices B.V. Nagarathna and Satish Chandra Sharma clarified that legislation is a valid exercise of legislative power and cannot be treated as defiance of a judicial order unless found unconstitutional. The Court reaffirmed the principle of separation of powers, stressing that legislatures can make or amend laws, but their validity can only be tested through judicial review, not contempt proceedings.
