NCLT Upholds Ban on Reviving Delayed Homebuyer Claims

NCLT Ruling on Homebuyer Claims

The National Company Law Tribunal (NCLT) has upheld a decision stating that homebuyers are barred from reviving delayed claims once a resolution plan has received approval from the Committee of Creditors (CoC). The Tribunal found that claims not filed in a timely manner cannot delay the resolution process.

This decision emphasizes the principle that the CIRP aims to conclude insolvency proceedings efficiently and fairly. The NCLT explicitly stated that awareness or ignorance of the CIRP cannot be accepted as a valid reason for missing the timeline to submit claims.

For legal practitioners, this ruling highlights the necessity for homebuyers and creditors to be vigilant about filing claims within the stipulated timeframes during insolvency proceedings, as failure to do so may result in permanent loss of rights to recover dues thereafter.