Final RERA refund decree crystallises homebuyer rights to refund, barring possession claims in CIRP; RP bound by decree and resolution plan exit policy without order modification.

ORDER

1. This present application is filed on 16.04.2025, by Snigdha Parakh and Arvind Parikh (hereinafter collectively referred as “Applicants”) under section 60(5) of the Insolvency and Bankruptcy Code, 2016 (“Code”) read with Rule 11 of National Company Law Tribunal Rules, 2016 against the Resolution Professional (hereinafter referred as “Respondent/RP”) of Jaiprakash Associates Limited i.e., Corporate Debtor. The Applicant inter alia seeks the following prayers:

“(1) Pass an order allowing the present application and direct the Respondent to correctly admit the claim of the Applicants for the Possession of their Unit; and;

(2) Pass an order allowing the present application and direct the Respondent to issue the offer of profession to the applicants for their unit KGT0031901 in Jaypee Knights Court, Tower No. 3; and /or;

(3) Pass any other order(s) and direction(s), that this Hon’ble Court may deem fit and proper in the facts and circumstances of the case and in the interest of justice.”

2. The brief facts as submitted by the Applicants are as follows:

a. The Applicants submit that they had applied for booking and allotment of a residential flat bearing Unit No. KGT0031901 with the Corporate Debtor, in the project named “Knights Court” situated at Jaypee Greens Wish Town. It is stated that, as per the Provisional Allotment Letter dated 10.02.2012, the said unit was to be delivered within a period of 36 months. The Applicants further submit that, towards the said unit, they had paid a sum of Rs. 1,36,89,489/- out of the total consideration amounting to Rs. 1,44,35,240/- by 22.04.2013.

b. However, the Corporate Debtor failed to hand over possession of the said unit within the timeline stipulated in the allotment letter. Consequently, the Applicants approached the UP RERA by filing a complaint. Vide order dated 29.01.2021, the Corporate Debtor was directed to hand over possession within a period of 15 months. However, upon failure to comply with the said direction, the UP RERA, vide order dated 19.04.2022, directed the Corporate Debtor to refund the entire amount paid by the Applicants along with interest at the rate of MCLR + 1% from the respective dates of payment. Thereafter, a Recovery Certificate dated 19.01.2023 was issued by UP RERA against the Corporate Debtor, wherein the amount due and payable was determined to be Rs. 2,57,64,887/-.

c. Thereafter, the Corporate Debtor assured the Applicants that, notwithstanding the refund order passed by UP RERA, possession of the flats would be handed over to the homebuyers once the units were ready. It is stated that, based on such assurance, the Corporate Debtor also collected the balance consideration amounting to Rs. 12,83,882/- from the Applicants on 17.03.2023 and 06.09.2023.

However, despite the same, the Corporate Debtor neither handed over possession of the unit nor complied with the refund order passed by UP RERA.

d. Subsequently, the Corporate Debtor was admitted into the Corporate Insolvency Resolution Process (CIRP) vide order dated 03.06.2024. Pursuant to the Public Announcement dated 06.06.2024, the Applicants filed their claim as Financial Creditors in a class in Form CA dated 15.06.2024, seeking possession of the said unit. However, it is stated that the said claim is still pending consideration, as reflected on the website.

e. Eventually, the Applicant received the minutes of the 3rd, 4th and 5th meetings of the Committee of Creditors (CoC). As recorded in the minutes of the 3rd CoC meeting dated 30.08.2024, allot