- within Corporate/Commercial Law topic(s)
- with readers working within the Law Firm industries
- within Corporate/Commercial Law, Real Estate and Construction and Technology topic(s)
- with Senior Company Executives and HR
The National Company Law Appellate Tribunal ("NCLAT"), through its judgment dated 17.10.2025 in Ms. Reena v. Rabindra Kumar Mintri & Anr.1, held that claims of the homebuyers whose payments are reflected in the records of the corporate debtor cannot be denied merely for being filed after the prescribed timeline during the corporate insolvency resolution process ("CIRP").
In the present matter, Ms. Reena ("Appellant") and other homebuyers had missed the original deadline for filing claims due to reasons such as non-receipt of notice, COVID-19 travel and health restrictions, and lack of information about the proceedings. Homebuyers sought condonation of delay citing inability to participate in the process and provided the records which indicated that the payments and the contractual allotments have been duly reflected in the corporate debtor records. The Successful Resolution Applicant ("Respondent") relied on M/s RPS Infrastructure Ltd. v. Mukul Kumar & Anr.2 ("RPS Case") to argue that the claims which are delayed must be rejected. However, the NCLAT distinguished the present case, noting that the RPS Case dealt with commercial creditors, whereas the present claims of the homebuyers were substantiated by clear records in the books of the corporate debtor and have highlighted bona fide reasons for delay, not mere commercial claims raised belatedly.
The NCLAT held that such homebuyers are to be treated as financial creditors within their class and their claims must be incorporated in the resolution plan through an addendum. The NCLAT directed the Resolution Professional and Respondent to submit a second addendum to the Committee of Creditors within 30 days, ensuring the inclusion of these claims for final consideration by the adjudicating authority.
Footnotes
1. Comp. App. (AT) (Ins) No. 170 of 2025.
2. Civil Appeal No.5590 of 2021.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
