Case Note & Summary
The case involves an appeal filed by Sonia Kapoor, an allottee of a unit (A-1-104) in a real estate project of Dream Procon Pvt. Ltd. (Corporate Debtor), against an order of the NCLT, New Delhi dated 11.08.2023 rejecting her application (I.A. No. 3419/2021) seeking extension of time to file her claim in the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor. The CIRP commenced on 06.09.2019. The Interim Resolution Professional (IRP) invited claims from creditors, including homebuyers. The appellant did not file her claim within the stipulated time. The Resolution Professional (RP) prepared a list of allottees who had not filed claims, which included the appellant's name and unit details. The resolution plan was submitted by resolution applicants and approved by the Committee of Creditors (CoC) on 07.05.2021. After the approval, on 24.06.2021, the appellant filed her claim in Form CA. The RP rejected the claim as it was filed after the deadline. The appellant then filed I.A. No. 3419/2021 before the NCLT seeking extension of time to file the claim and condonation of delay. The NCLT dismissed the application. The appellant appealed to the NCLAT. The NCLAT heard the counsel for the appellant, the RP, and the Successful Resolution Applicant. The NCLAT held that once the resolution plan is approved by the CoC, the timeline for filing claims cannot be extended. The plan is binding on all stakeholders, including those who did not file claims. The adjudicating authority cannot reopen the process to include late claims. The appeal was dismissed.
Headnote
A) Insolvency and Bankruptcy Code - Claim Filing Deadline - Homebuyer/Allottee - Sections 7, 30, 31, IBC, 2016 - Regulation 12 of CIRP Regulations - The appellant, an allottee of a unit in the corporate debtor's project, failed to file her claim within the time stipulated under the CIRP. The resolution plan was approved by the CoC on 07.05.2021. The appellant filed her claim on 24.06.2021, which was rejected by the RP. The NCLT dismissed her IA seeking extension of time. The NCLAT held that once the resolution plan is approved by the CoC, the timeline for filing claims cannot be extended, and the adjudicating authority cannot reopen the process. (Paras 1-5) B) Insolvency and Bankruptcy Code - Resolution Plan Finality - Binding Nature - Sections 30, 31, IBC, 2016 - The resolution plan, once approved by the CoC and adjudicating authority, is binding on all stakeholders including those who did not file claims. The plan cannot be modified or reopened to include late claims. (Paras 4-5) C) Insolvency and Bankruptcy Code - Homebuyer Rights - Claim Filing - Regulation 12 of CIRP Regulations, 2016 - Homebuyers are required to file their claims within the time specified in the public announcement. Failure to do so results in loss of right to participate in the resolution process. The RP is not obligated to accept late claims after CoC approval. (Paras 2-4)
Issue of Consideration
Whether an allottee/homebuyer can be permitted to file a claim after the resolution plan has been approved by the Committee of Creditors and whether the NCLT can extend time for filing claims after such approval.
Final Decision
Appeal dismissed. Order of NCLT dated 11.08.2023 upheld.
Law Points
- Claim filing deadline
- CIRP timeline
- Resolution plan finality
- Homebuyer rights
- IBC Section 7
- CIRP Regulations 2016
