Belated claims filed post CoC approval of resolution plan, despite prior awareness and settlement assertion, cannot be condoned; rejection upholds CIRP's time-bound nature and prevents uncertainty for resolution applicants. (38 words)

J U D G M E N T

(27^th April, 2026)

Ashok Bhushan, J.

1.These two Appeals have been filed challenging the order dated 10.10.2025 passed by the Adjudicating Authority (National Company Law Tribunal) Mumbai, Court-II in IA No.5094 of 2024 and IA (IBC) (Plan) No.75 of 2024 in C.P.(IB) No.719/MB/2022. The application filed by the Appellant being IA No.5094 of 2024 has been rejected by the impugned order and by separate order of the same date 10.10.2025, IA (IBC) (Plan) No.75 of 2024 has been approved. Aggrieved by the aforesaid two orders, these two Appeals have been filed.

2. Brief facts of the case necessary to be noticed for deciding the Appeal are:-

2.1. A Real Estate Project namely— ‘Kingsville’ previously known as ‘Sunshine Infinity’ for construction of a building was started as slum rehabilitation project by one ‘Grace Developers’. The project was transferred in the year 2009 to a company called ‘Sunshine Housing and Infrastructure Private Limited’ (SHIPL), by way of a Development Agreement. ‘Sunshine Housing and Infrastructure Private Limited’ started the project. The Appellant society was registered on 10.09.2018 consisting of homebuyers of the project. There being certain financial difficulties with ‘Sunshine Housing and Infrastructure Private Limited’, MoU dated 06.11.2018 was entered between the Appellant society and ‘Sunshine Housing and Infrastructure Private Limited’ where it was noted that the members of the society including the proposed members are responsible to pay collectively Rs.28,05,60,738/- towards their balance payment. First party took responsibility to collect and pay aforesaid amount to second party i.e. ‘Sunshine Infinity Co-operative Housing Society Limited’ so that the project can be satisfactorily completed. First party was also to supervise the completion of the work and payments to vendors on behalf of the second party shall also be made by the first party. The project proceeded. ‘Sunshine Housing and Infrastructure Private Limited’ transferred the entire project on a slump sale basis by way of a deed of business transfer undertaking dated 18.03.2019 in favour of SQ Infrastructure Private Limited, the Corporate Debtor herein. Corporate Debtor needed financial assistance from the Appellant. One more MoU was entered between the Corporate Debtor and the Appellant dated 17.08.2019 under which Appellant took to form a corpus of minimum amount of Rs.9 Crore for project completion. The company was to use all receivable amounts from committed sales or new sale has to be deposited/ to be accumulated in the Escrow A/c managed by Axis Finance Limited from whom the company has taken finance. A third MoU dated 23.03.2021 was entered between the Appellant and the Corporate Debtor where Corporate Debtor was required to pay Rs.4.5 Crores towards obtaining occupancy certificate and other expenses. The Corporate Debtor approached the company for stop gap funding of Rs.4.5 Crores. Developer has agreed that commercial premises on the ground floor of the said project shall be mortgaged to the society to the extent of priority funding arranged by the society (shop admeasuring 800 sq. ft. and mezannine 400 sq. ft. with two parking and the apartment area on the ground floor). The Corporate Debtor obtained the Occupancy Certificate. Corporate Debtor had also made repayment of certain amounts to the society. The CIRP against the Corporate Debtor commenced on 18.12.2023. IRP in pursuance to initiation of CIRP made publication on 21.12.2023 inviting claims. Last date for submission of the claim was 01.01.2024. After receiving the claims, the CoC was constit