Can Homebuyer's Claim For Apartment Be Rejected For Not Filing Claim During Insolvency Process Against Builder? Supreme Court To Decide

The Supreme Court is set to determine whether the non-filing of a claim during the insolvency resolution process of a builder can result in the rejection of a homebuyer's claim for allotment of apartment. The case surrounds the insolvency process of Jaypee Infratech Limited. Its resolution plan was approved by the National Company Law Tribunal and was subsequently challenged in the Appellate Tribunal. In the main appeal, several intervention applications were filed including the one filed by the present appellant, an allottee of unit in Kosmos. The same was supposed to be developed by Jaypee. In his application, the appellant claimed that an allotment letter was issued to him. It was further submitted by him that he has deposited certain amount till June 2022. However, since he was not a resident of Delhi, he was unaware of the insolvency proceeding. As a result, the appellant could not file his claim in the insolvency process. Before the appellate tribunal, he pleaded that the successful resolution applicant may be directed to consider his claim as an “ACTIVE” homebuyer, at par with other homebuyers whose claims are already considered. However, his application came to be dismissed. Against this order, he appealed before the Top Court. His counsel argued that the payments he made were genuine. The arguments rested on the fact that the payments made by the appellant were reflected in Jaypee's book of accounts. Accordingly, it was submitted that non-filing of the claim by the appellant should not result in rejecting his claim and entitlement as a home buyer. It was clarified that the appellant is not challenging the resolution plan and is restricting its claim to the aforesaid issue. The Division Bench of Justices Sanjiv Khanna and Dipankar Datta, while issuing notice in the instant appeal, also added: “We clarify that the issue of notice in the present appeal will not come in the way of execution/implementation of the resolution plan. Allotment of the unit to the appellant, if made, will be subject to the outcome of the present appeal and the right and claim of the appellant.” Case Title: AYUSH AGARWAL v. JAYPEE INFRATECH LTD. & ORS., Civil Appeal No. 5185/2024 Click here to read/ download the order

Can Homebuyer's Claim For Apartment Be Rejected For Not Filing Claim During Insolvency Process Against Builder? Supreme Court To Decide

Gyanvi Khanna

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