NCLAT Upholds Homebuyers' Rights to Late Claims in CIRP Proceedings

Resolution Applicant Directed to Include Late Claims of Homebuyers as Financial Creditors in Resolution Plan  

In a landmark decision, the National Company Law Appellate Tribunal (NCLAT) Principal Bench, New Delhi, has ruled in favor of homebuyers whose claims were filed beyond the stipulated 90-day period following the commencement of the Corporate Insolvency Resolution Process (CIRP). The judgment, delivered on October 17, 2025, in the case titled "Ms. Reena and ors. v. Rabindra Kumar Mintri and anr.," mandates the inclusion of these claims in the resolution plan, provided that the payments made by these homebuyers are reflected in the records of the Corporate Debtor, Today Homes Noida Pvt. Ltd.  

The tribunal, chaired by Justice Ashok Bhushan and Member Arun Baroka, addressed multiple appeals filed by homebuyers who missed the initial claim filing deadline due to various reasons, including the COVID-19 pandemic and lack of awareness about the initiation of the CIRP. These appellants had invested in the "Ridge Residency" housing project in Noida but faced hurdles in getting their claims recognized in the insolvency proceedings.  

The NCLAT's decision overturns an earlier order by the National Company Law Tribunal (NCLT), which had dismissed the homebuyers' applications for late claims, citing the already approved resolution plan by the Committee of Creditors (CoC). The appellate tribunal emphasized that claims of homebuyers, whose payments are documented in the Corporate Debtor's records, must be treated equitably as Financial Creditors in a Class.  

The tribunal drew upon precedents set in cases such as "Puneet Kaur v. M/s. K.V. Developers Private Limited" and "Amit Nehra v. Pawan Kumar Garg" to reinforce the need for equitable treatment of homebuyers. It directed the Resolution Applicant to prepare an addendum to the resolution plan, incorporating these claims and ensuring they are submitted to the CoC for reconsideration.  

The judgment highlights the tribunal's commitment to ensuring fairness in the CIRP process and upholding the interests of homebuyers, who often find themselves at a disadvantage in insolvency proceedings. The tribunal's directive to include these claims as Financial Creditors in a Class is a significant step towards protecting the rights of homebuyers in real estate insolvency cases.  

Bottom Line:

Corporate Insolvency Resolution Process (CIRP) - Claims of homebuyers filed beyond 90 days of commencement of CIRP must be considered if payments made by them are reflected in the records of the Corporate Debtor. Resolution Applicant is directed to prepare an addendum to include these claims and treat them equitably as Financial Creditors in a Class.

Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Sections 30(2), 60(5); Regulation 13(1B) of the CIRP Regulations 2016.

Ms. Reena v. Rabindra Kumar Mintri, (NCLAT)(Principal Bench, New Delhi) : Law Finder Doc Id # 2796836