The National Company Law Tribunal (NCLT) New Delhi Bench admitted a Section 7 application filed by homebuyers after finding that the developer’s failure to hand over possession within the promised timeline constituted a financial default warranting initiation of the Corporate Insolvency Resolution Process (CIRP).
The petition was filed by 176 allottees of a real estate project who alleged prolonged delay in completion and delivery of possession despite having paid substantial amounts towards their respective units. The homebuyers contended that the developer had failed to fulfil its contractual commitments and had continued to withhold possession long after the expiry of the agreed timelines.
The corporate…