SC Upholds Home Buyers Rights – IBC Resolution Plan
Judgment dated 9.9.2025 of the Supreme Court of India in Civil Appeal No. 4296 of 2025 of Amit Nehra and another Vs. Pawan Kumar Garg and others
The appellants claimed possession of their flat in the real estate project at Mohali of the Corporate debtor.
In 2010, the appellants booked the apartment and on 27.5.2011, the buyer’s agreement with the Corporate Debtor was executed. The possession was to be given before 27.11.2013. Rs.57,56,684/- out of Rs.60,06,368/- were paid.
In 2018, the appellants filed consumer complaint for refund of amount with interest and compensation.
On 17.10.2018, Section 7 IBC application was admitted against the Corporate Debtor.
On 13.12.2018, the Consumer Forum disposed of the complaint with liberty to the appellants to pursue their claim in CIRP proceedings.
On 29.10.2018, the appellants submitted their claim with IRP and on 11.1.2019, the claim was physically submitted at the CD project office.
In the list of financial creditors published on 30.4.2020, the name of the appellants was shown at serial No.636 with their claim of Rs.57,56,684/-.
On 1.6.2021, the Resolution Plan was approved. However, the prayer for possession and execution of conveyance was rejected by the NCLT and also by NCLAT on the ground that it was belated claim.
The question is whether the appellants are to be treated as “belated claimants” and entitled only to refund of their amount OR whether they are entitled to possession of the flat since their claim was verified and included in the list of Creditors by the RP.
HELD that once such verification of the claim of flat buyers was made and it was incorporated in the list of Creditors published by the Resolution Professional, the claim has acquired full legal recognition within CIRP process. The publication of the list of financial creditors is an act in discharge of statutory duty by the Resolution Professional. It cannot be reduced to a meaningless formality.
