Tribunal mandates inclusion of all prospective Resolution Applicants for Parcel 3, ensuring fair treatment of homebuyers and expeditious resolution.
In a significant development, the National Company Law Tribunal (NCLT) in Kolkata has directed a modification to the eligibility criteria for resolution plans in the insolvency proceedings involving Riverbank Developers Private Limited. The Tribunal ruled that the existing criteria, which restricted participation for Parcel 3 to homebuyers only, was unjust and restrictive. Consequently, it ordered that Parcel 3 be opened to all prospective Resolution Applicants, similar to other parcels under the Corporate Insolvency Resolution Process (CIRP).
The Tribunal's decision, dated December 3, 2025, came in response to grievances raised by 253 homebuyers, who are part of a larger group of 589 sold units in the Hiland Green Phase II project. These homebuyers contended that the restrictive eligibility criteria for Parcel 3 were detrimental to their interests and failed to attract credible resolution applicants, thereby impeding the resolution process.
The NCLT recognized homebuyers as a distinct class of financial creditors and emphasized that they cannot be compelled to become Resolution Applicants if they lack the financial capacity. The Tribunal underscored the importance of fair treatment of homebuyers, who have already invested significant amounts with the expectation of receiving their residential units.
In its order, the Tribunal also noted the necessity of issuing a fresh Form-G for inviting resolution plans, including Parcel 3 within a larger parcel. This initiative aims to attract serious and credible bidders, facilitating a swift and effective resolution. Notifications are to be published in leading English and Bengali newspapers, as well as one with nationwide circulation, to ensure widespread awareness among potential applicants.
The Tribunal further directed a fresh valuation of the entire project, detailing land area, unsold units, and other assets, to provide a clear picture to prospective applicants. The timeline for completing the resolution process has been extended by 90 days to accommodate these changes.
This ruling is expected to expedite the resolution process, benefiting the homebuyers who have been awaiting possession of their flats. It also underscores the Tribunal's commitment to ensuring fair and equitable treatment of all stakeholders involved in insolvency proceedings.
Bottom Line:
Insolvency and Bankruptcy Code - Parcel-specific eligibility criteria for resolution plans - Criteria restricting participation to homebuyers only for Parcel 3 deemed restrictive and unjust - Tribunal directed modification to open Parcel 3 to all prospective Resolution Applicants for fair and effective resolution.
Statutory provision(s): Insolvency and Bankruptcy Code, 2016, Section 25, CIRP Regulations, Regulation 16A, Regulation 35(1)(a)
