Insolvency – Home Buyer Claim

Important question as to whether the home buyer whose payment is credited in the accounts of the promoter but who has not filed claim in insolvency proceedings can retain his entitlement and also possession of the flat is pending consideration and decision of the Supreme Court.

The appellant is the home buyer, he was allotted flat in 2009 and has made substantial payments.  The payments were shown in the accounts of the corporate debtor – builder.   There is no dispute that the payments are genuine. 

CIRP was initiated against the builder. IBBI directed the Insolvency Professional to assess claims of home buyers based on the records of the Corporate Debtor.  Flat of the appellant was listed as liability of the CD in the information memorandum.

Website of CD stated that the flats of home buyers who did not claim during insolvency process would be treated on par with other home buyers.  Thus, the submission of claim was not mandatory.

However, the appellant – home buyer did not file his claim in the insolvency proceedings.

NCLT approved the resolution plan and successful Resolution Applicant.

The building, relying on failure of appellant to submit claim, denied possession of the flat.  The plea of home buyer was rejected by the NCLT.

Whether non-filing of the claim by the home buyer in insolvency proceedings would result in reject his claim and entitlement.

  Supreme Court Order dated 29.4.5.2024 in Civil Appeal No.5185 of 2024 of Ayush Agarwal Vs. Jaypee Infratech Ltd and others.

ayush-agarwal-v-jaypee-infratech-ltd-ors-1616206.pdf (verdictum.in)