Tribunal holds payments made to associate companies insufficient to classify claimants as financial creditors unless fund flow to corporate debtor is established; belated claims allowed for reconsideration under CIRP Regulations.
In a significant judgment dated September 29, 2026, the National Company Law Tribunal (NCLT), Chandigarh Bench, adjudicated on the claims of homebuyers in the corporate insolvency resolution process (CIRP) of SRS Real Estate Ltd. The applicants, Raj Kumar Jindal and Vivek Aggarwal, sought recognition as financial creditors in a class for claims relating to 54 flats in the SRS Royal Hills Phase-2 project. The claims were initially rejected by the Resolution Professional (RP) on the ground that payments were made not directly to the corporate debtor but to its associate/group entities - NKR Infrastructure Pvt. Ltd. and Topline Traders Ltd. The applicants argued that adjustment receipts and allotment letters evidenced their financial debt towards the corporate debtor.
The Tribunal observed that while the applicants furnished evidence of payments amounting to Rs. 54 lakhs made to these associate companies, there was no conclusive proof that these amounts were subsequently transferred, adjusted against, or accounted for by the corporate debtor itself. The Tribunal emphasized the legal requirement under Section 5(8)(f) of the Insolvency and Bankruptcy Code, 2016 (IBC) that for a homebuyer/allottee's claim to qualify as a financial debt, the amount must be disbursed to and reflected in the accounts of the corporate debtor's real estate project. Mere receipts or allotment letters indicating adjustments from payments to sister concerns do not suffice to establish the requisite financial debt.
Further, the Tribunal addressed the issue of delay in claim submission. Although the RP contended that the claim was belatedly filed on August 6, 2023, beyond the last date of January 6, 2023, specified in the public announcement, the Tribunal held that such delay alone is not fatal. Given that the resolution plan was approved by the Committee of Creditors (CoC) only on January 12, 2024, and considering the provisions of newly inserted Regulations 13(1B) and 13(1C) of the CIRP Regulations, 2016, the claim must be examined on merits subject to verification.
The NCLT directed the RP to re-verify the applicants' claims by examining relevant records and documents to establish any nexus between payments made to associate companies and the corporate debtor's liability. The applicants were granted liberty to place additional material demonstrating that the amounts paid to NKR Infrastructure Pvt. Ltd. and Topline Traders Ltd. were ultimately credited to the corporate debtor. If such evidence is forthcoming, the claims are to be admitted as those of financial creditors in a class under Section 5(8)(f) of the IBC. Otherwise, the applicants may be treated as homebuyers with claims classified under other creditors.
This judgment underscores the rigorous scrutiny applied to homebuyers' claims in insolvency proceedings involving real estate projects, particularly where payments are routed through group companies. It also clarifies that delay in claim submission, while a procedural concern, cannot override substantive rights if the claim is otherwise valid and the resolution process is ongoing.
Bottom Line:
Insolvency and Bankruptcy Code, 2016 - Homebuyers' claim - Payments made to associate/group entities and not directly to corporate debtor - Mere allotment letters/receipts showing adjustment are insufficient to treat applicants as financial creditors in a class unless nexus is established that amounts were ultimately transferred to, adjusted towards, or accounted for by corporate debtor - Belated filing of claim before approval of resolution plan by CoC is not by itself fatal - RP directed to re-verify claim on relevant records.
Statutory provision(s):
Insolvency and Bankruptcy Code, 2016 Section 5(8)(f), Section 60(5); IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 Regulations 8A, 12, 13(1B), 13(1C)
Raj Kumar Jindal v. SRS Real Estate Ltd., (NCLT)(Chandigarh Bench) : Law Finder Doc Id # 2990079
