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The National Company Law Appellate Tribunal (NCLAT) has held that genuine allottees of Today Homes Noida developer of the Ridge Residency project in Sector 135, Noida whose payments are recorded in the company's books cannot be denied claim rights simply because they applied after the 90-day window under the corporate insolvency resolution process (CIRP). The tribunal directed the successful resolution applicant to issue an addendum and include such late-filed claims within 30 days, treating them on par with other homebuyers in the same class. The earlier National Company Law Tribunal (NCLT) bench had dismissed these claims as time-barred.
The National Company Law Appellate Tribunal recently reviewed claims by 20 homebuyers of Today Homes Noida whose applications were rejected by the NCLT because they were submitted after the 90-day deadline under the CIRP. These buyers had paid for units in the Ridge Residency project, and their payments were reflected in the developer's financial records. Advertisement
The project, launched around 2010, still has several incomplete towers. The CIRP against Today Homes began in August 2019.
The NCLT had barred the buyers' claims on the basis that they were filed beyond the stipulated time. The NCLAT found this approach incorrect, noting that when payments are admitted and recorded, the timing of the claim filing cannot be the sole ground for denial.
In its order, the NCLAT directed the resolution applicant to prepare an addendum to the approved plan within 30 days and include the appellants' claims, treating them as financial creditors in the same class as other homebuyers. This means they should receive the same treatment and benefits under the plan as others whose claims were timely filed.
The tribunal further pointed out that approval by the Committee of Creditors does not automatically override an admitted homebuyer's claim simply because it was delayed. It emphasised that the NCLT had ignored prior guidance that delayed claims deserving merit must be examined on their substance, not dismissed purely for lateness.
This decision brings relief for homebuyers who missed the original filing deadline but can show their payments to the developer were recorded. It aligns with recent jurisprudence where the Supreme Court held that homebuyers in insolvency-affected projects are entitled to possession or proper treatment if their claims are verified.
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