One important but often overlooked relief for homebuyers is that claims before the Real Estate Regulatory Authority (RERA) are not governed by the Limitation Act, 1963, considering the beneficial nature of the Real Estate (Regulation and Development) Act, 2016. For allottees who discover insolvency proceedings late, this can become a crucial legal route.

Under the Insolvency and Bankruptcy Code, 2016 (IBC), creditors must submit claims to the Resolution Professional within the prescribed timeline under Section 15 of the Code read with Regulation 12 of the CIRP Regulations. Once the resolution plan is approved by the Committee of Creditors (CoC) and subsequently by the NCLT under Sections 30 and 31, introducing new claims becomes extremely difficult.

Key Judicial Principles

Courts have consistently emphasized finality in the insolvency process:

• RPS Infrastructure Ltd. v. Mukul Kumar (2023) 10 SCC 718 – Fresh claims cannot be introduced after approval of the resolution plan by CoC even though plan approval application is pending before NCLT; the successful resolution applicant cannot be burdened with unknown liabilities.
• Ghanashyam Mishra and Sons Private Limited vs. Edelweiss Asset Reconstruction (2021) 9 SCC 65 – It is only after the Resolution Plan is approved by the Adjudicating Authority that all such claims not forming part of the Plan shall stand extinguished.
• Committee of Creditors of Essar Steel v. Satish Kumar Gupta (SC) – An approved resolution plan binds all stakeholders and extinguishes undecided claims to provide certainty to the resolution applicant.
• Vinod Kumar @ Vinod Yadav v. Prabhjit Singh Soni [Comp. App. (AT) (Ins) No. 1447 of 2025, judgment dt. 08.01.2026] – Belated claims filed after approval of the resolution plan by NCLT shall not be entertained. The remand of the plan for reconsideration by the Hon’ble Supreme Court did not entitle the Appellant to file a delayed claim.

However, NCLAT has also carved out limited relief where genuine homebuyer claims are already reflected in the corporate debtor’s records(only where resolution plan has not been approved by NCLT):

• Puneet Kaur v. K.V. Developers Pvt. Ltd. [Comp. Appeal (AT) (Ins.) No. 390 of 2022, judgment dt. 01.06.2022] – Belated claims where payments by allottees and their allotments appeared in the corporate debtor’s records must be appropriately dealt with in the Resolution Plan by way of an addendum and placed for consideration before the CoC and Adjudicating Authority within a prescribed time.
• Rahul Jain v. Nilesh Sharma, RP of Dream Procon Pvt. Ltd. [Comp. Appeal (AT) (Ins.) No.1662 of 2023, judgment dt. 14.05.2025] – Similar relief granted where the claim was verifiable from the developer’s books.
• Reena v. Rabindra Kumar Mintri, RP of Today Homes Noida Pvt. Ltd. [Comp. App. (AT) (Ins.) No. 170 of 2025, judgment dt. 17.10.2025] – Claims of bona fide homebuyers reflected in the company’s records should be treated at par with other allottees.

The Strategy That Worked

In one matter handled by our office, the CIRP had commenced in September 2019, with 2 January 2020 as the last date for submission of claims, and the resolution plan had already been approved by the NCLT in June 2023. Our client approached us only in February 2024, almost four years after the claim window had closed.

Given the settled position under the IBC, attempting to reopen the insolvency process would have carried significant risk. Instead, we first verified that the client’s allotment and payment records were reflected in the corporate debtor’s books.

We then placed the claim on record by issuing correspondence to the Resolution Professional and the Successful Resolution Applicant. When this did not elicit a response, we strategically filed a complaint before the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) under Section 31 of RERA. The claim was supported by allotment documents, builder statements of account and bank payment records, clearly establishing the client’s status as an allottee.

During the course of the RERA proceedings, negotiations with the successful resolution applicant began. Since the allotment continued to be reflected in the developer’s records, transferring the plot to a third party could potentially expose the project to further disputes. This opened the door for a commercial resolution.

The matter ultimately culminated in a settlement agreement in August 2025, under which the client secured a substantial refund.

Practical Takeaways for Homebuyers

• Act immediately if you learn that insolvency proceedings have been initiated against your developer.
• Maintain complete documentation — allotment letters, payment proofs, and builder statements of account.
• Verify whether your allotment appears in the developer’s records, as this can significantly strengthen your claim.
• Consider RERA as an independent remedy, particularly where the insolvency claim window has long closed.
• Use litigation strategically to enable settlement, which often becomes the most practical outcome.

The Larger Lesson

IBC has transformed India’s insolvency framework, but procedural timelines can leave genuine homebuyers without recourse if they remain unaware of insolvency proceedings. For homebuyers, the safest approach is always to monitor CIRP proceedings and file claims promptly. But even when the deadline is missed, careful legal strategy and strong documentation can still open a path toward resolution.