Factual Matrix 

In the case of Rohit Kumar v. Union of Indi, The agreement between the homeowners and the builder stated that the builders would pay the EMIs to the banks or Non-Banking Financial Corporations up until the time the purchasers received possession of their allotted properties and that the homebuyers would be responsible for paying the EMIs after receiving possession. However, the builder was going through the Corporate Insolvency Resolution Process since he had neglected to pay his EMIs to the banks and NBFCs on time. The financial institutions then contacted the homebuyers to discuss how late payments might damage their CIBIL score. So, the petitioner went to the High Court to ask for a writ of mandamus or certiorari ordering the banks and NBFCs to hold off on collecting any EMI payments from the petitioner until they got possession of the residences they had been assigned. The petitioners said that the builder had violated their duties and obligations by failing to do so, depriving them of the fundamental rights that are protected by Articles 19 and 21 of the Indian Constitution. 

The petitioner received relief from the High Court judgement dated 25-05-2022, which instructed the Bank and NBFC not to pursue any coercive actions against the petitioner and to modify the petitioner’s CIBIL scores to ensure that the petitioner was not financially affected. However, the High Court overturned the aforementioned relief after hearing several applications. As a result, the petitioner went to court after being upset by the High Court’s decision.

Analysis of court order 

When giving notice, the Court allowed the petitioner temporary relief by deferring the payment of their EMIs until they had possession of the residences they had been assigned. The petitioner shall be entitled to the benefit of the same interim protection until the next date of hearing before the Court since the petitioner has benefited from interim protection since May 25, 2022, through the date the impugned order was granted.

The Division Bench of justices V. Ramasubramanian and Justice Pankaj Mithal issued notice and granted interim protection to the homebuyers for deferred payment of EMIs in a petition challenging the judgement and order of the High Court of Delhi, wherein the relief to the homebuyers and petitioners for deferment of payment of Equated Monthly Instalment to the Banks and financial institutions was lifted.