NOIDA: In a significant decision for homebuyers, the National Company Law Appellate Tribunal (NCLAT) has ruled that legitimate allottees, whose payments are recorded in a builder’s accounts, cannot be denied their entitlements solely due to late claim submissions during an ongoing insolvency process.
The appellate tribunal, led by Justice Ashok Bhushan, issued the order on October 17, overturning a previous ruling from the National Company Law Tribunal (NCLT) principal bench, which had dismissed the claims of 20 homebuyers as “time-barred” concerning the insolvency proceedings of Today Homes Noida, the developer behind the Ridge Residency project in Sector 135.
Justice Bhushan’s bench also instructed the successful resolution applicant (SRA) to ensure that these homebuyers receive equal treatment alongside other allottees in the same category. The order stated, “The resolution applicant shall prepare an addendum and incorporate the claims of the appellants, as indicated in the affidavit filed by the resolution professional in accordance with the orders from March and June 2024, treating the appellants as financial creditors within the same class as others in the resolution plan, which should be completed within 30 days.”
The NCLAT’s directive followed an appeal by the 20 homebuyers against a January 22, 2025, NCLT ruling that invalidated their claims for being submitted beyond the 90-day threshold post the initiation of the corporate insolvency resolution process (CIRP), which the NCLT deemed invalid.
The CIRP against Today Homes Noida commenced on August 20, 2019, in response to petitions from homebuyers. The interim resolution professional had invited claims until September 3, 2019, while numerous units within the Ridge Residency project remained unfinished, and many buyers awaited possession.
The Committee of Creditors (CoC) approved One Group’s resolution plan in March 2020; however, many homebuyers reported that they only became aware of the insolvency situation between 2023-24 due to travel, pandemic-related issues, or lack of communication from the builder. Consequently, the NCLT rejected their late claims.
Justice Bhushan pointed out that the NCLT overlooked the NCLAT’s May 2024 instruction to evaluate delayed claims on their merits before reevaluating the resolution plan. The tribunal emphasized that the resolution professional had confirmed the buyers’ payments in company records and therefore could not dismiss their claims based on a technical delay. It reiterated that the CoC’s approval does not absolve valid homebuyer obligations.
The Ridge Residency project, launched in 2010 with a total of 18 towers, continues to have several incomplete blocks and limited ongoing registrations.
