{"id":677,"date":"2026-08-01T04:45:50","date_gmt":"2026-08-01T04:45:50","guid":{"rendered":"https:\/\/mudralegal.com\/blog\/?p=677"},"modified":"2026-08-01T04:57:07","modified_gmt":"2026-08-01T04:57:07","slug":"can-a-defaulting-homebuyer-claim-a-flat-after-the-builder-enters-insolvency-nclat-clarifies-the-law-in-parveen-gakhar-v-adani-goodhomes-pvt-ltd","status":"publish","type":"post","link":"https:\/\/mudralegal.com\/blog\/can-a-defaulting-homebuyer-claim-a-flat-after-the-builder-enters-insolvency-nclat-clarifies-the-law-in-parveen-gakhar-v-adani-goodhomes-pvt-ltd\/","title":{"rendered":"Can a Defaulting Homebuyer Claim a Flat After the Builder Enters Insolvency? NCLAT Clarifies the Law in Parveen Gakhar v. Adani Goodhomes Pvt. Ltd."},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"677\" class=\"elementor elementor-677\">\n\t\t\t\t<div class=\"elementor-element elementor-element-5f7005f9 e-flex e-con-boxed e-con e-parent\" data-id=\"5f7005f9\" data-element_type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-60fb5993 elementor-widget elementor-widget-text-editor\" data-id=\"60fb5993\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The Insolvency and Bankruptcy Code, 2016 (IBC) recognizes homebuyers as financial creditors and grants them significant rights during the Corporate Insolvency Resolution Process (CIRP). However, an important question often arises:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><strong>Can a person who has defaulted on payment and whose allotment was cancelled before the builder entered insolvency still claim ownership of the flat during CIRP?<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The <strong>National Company Law Appellate Tribunal (NCLAT)<\/strong> answered this question in <strong>Parveen Gakhar v. Adani Goodhomes Pvt. Ltd. &amp; Anr. (Company Appeal (AT) (Insolvency) No. 228 of 2023)<\/strong>, decided on <strong>2 March 2023<\/strong>.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The Tribunal held that <strong>a purchaser who defaults on payment, ignores cancellation notices, and allows the allotment to be withdrawn before the commencement of insolvency proceedings cannot claim the status of an allottee under the IBC.<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">This judgment draws a clear distinction between <strong>genuine homebuyers<\/strong> and <strong>defaulting purchasers<\/strong>, reaffirming that insolvency law protects only those whose legal rights continue to exist on the insolvency commencement date.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Background of the Case<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Parveen Gakhar booked a residential flat in a project developed by <strong>Adani Goodhomes Pvt. Ltd.<\/strong><\/span><\/li>\n<li><span style=\"color: #000000;\">At the time of booking, she paid approximately <strong>\u20b95.27 lakh<\/strong> as the initial booking amount.<\/span><\/li>\n<li><span style=\"color: #000000;\">Under the agreed payment schedule, she was required to pay the remaining amount of approximately <strong>\u20b921.84 lakh<\/strong>.<\/span><\/li>\n<li><span style=\"color: #000000;\">However, despite repeated demand notices from the builder, she failed to clear the outstanding dues.<\/span><\/li>\n<li><span style=\"color: #000000;\">Recognising the continued default, the builder issued a <strong>final notice in September 2018<\/strong>, clearly informing her that if the outstanding amount was not paid within <strong>30 days<\/strong>, the builder would presume that she was no longer interested in the flat and would treat her application as withdrawn.<\/span><\/li>\n<li><span style=\"color: #000000;\">Even after receiving this notice, the purchaser neither made the payment nor challenged the proposed cancellation.<\/span><\/li>\n<li><span style=\"color: #000000;\">Several years later, in <strong>2021<\/strong>, insolvency proceedings were initiated against the builder under the Insolvency and Bankruptcy Code.<\/span><\/li>\n<li><span style=\"color: #000000;\">During the Corporate Insolvency Resolution Process (CIRP), the Resolution Professional treated the concerned flat as <strong>unsold inventory<\/strong> because the allotment had already been withdrawn before the commencement of insolvency.<\/span><\/li>\n<li><span style=\"color: #000000;\">The purchaser challenged this decision before the NCLAT and sought a direction to compel the Resolution Professional to execute the sale in her favour.<\/span><\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>The Legal Issue Before the NCLAT<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The Tribunal was required to determine a crucial legal question:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h4><span style=\"color: #000000;\"><strong>Can a purchaser who failed to honour the payment obligations and whose allotment stood cancelled before the commencement of CIRP still claim the status of a homebuyer (allottee) and seek ownership of the property during insolvency proceedings?<\/strong><\/span><\/h4>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The answer to this question would determine whether such a purchaser could prevent the Resolution Professional from treating the property as unsold inventory under the Resolution Plan.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>What Did the Tribunal Observe?<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The NCLAT examined the entire sequence of events.\u00a0<\/span><span style=\"color: #000000; font-style: inherit; font-weight: inherit;\">It noted that the builder had provided several opportunities to the purchaser to make the outstanding payment.\u00a0<\/span><span style=\"color: #000000; font-style: inherit; font-weight: inherit;\">The final notice issued in September 2018 clearly stated that failure to pay the balance amount within the prescribed period would result in withdrawal of the application.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The purchaser:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">did not pay the outstanding amount;<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">did not seek any extension of time;<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">did not challenge the cancellation before any legal forum; and<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">remained inactive until insolvency proceedings commenced nearly three years later.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The Tribunal observed that once the builder lawfully withdrew the allotment before initiation of CIRP, the purchaser ceased to have any enforceable right over the flat.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Why Was the Flat Treated as Unsold?<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">The Appellant argued that since she had already paid the booking amount, the Resolution Professional could not classify the flat as unsold.\u00a0<\/span><span style=\"color: #000000; font-style: inherit; font-weight: inherit;\">The Tribunal rejected this argument.<\/span><\/li>\n<li><span style=\"color: #000000;\">It held that payment of an initial booking amount alone does not permanently reserve ownership of a property.<\/span><\/li>\n<li><span style=\"color: #000000;\">A Builder-Buyer Agreement creates obligations for both parties.<\/span><\/li>\n<li><span style=\"color: #000000;\">While the builder is required to construct and deliver the property, the purchaser is equally obligated to make payments in accordance with the agreed schedule.<\/span><\/li>\n<li><span style=\"color: #000000;\">Where the purchaser repeatedly defaults and ignores notices despite sufficient opportunity, the builder is entitled to cancel the allotment in accordance with the contractual terms.<\/span><\/li>\n<li><span style=\"color: #000000;\">Since the cancellation had already taken place before the commencement of CIRP, the Resolution Professional rightly treated the flat as part of the unsold inventory available for implementation of the Resolution Plan.<\/span><\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Can a Defaulting Buyer Still Be Treated as a Homebuyer?<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">This was the central issue before the Tribunal.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The NCLAT answered it in the negative.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The Tribunal held that a person cannot continue to claim the status of a homebuyer merely because an advance payment had once been made.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Where a purchaser:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">fails to make the agreed payments,<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">ignores repeated demand notices,<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">allows the allotment to be cancelled, and<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">takes no legal action before commencement of insolvency,<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Such a person ceases to be an allottee for the purposes of the Insolvency and Bankruptcy Code.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The protections available to homebuyers under the IBC are intended for persons who possess <strong>existing legal rights<\/strong> on the insolvency commencement date.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">They do not revive contractual rights that have already come to an end.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h4><span style=\"color: #000000;\"><strong>The Importance of Timing<\/strong><\/span><\/h4>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">An important aspect of the judgment is the timing of the cancellation.<\/span><\/li>\n<li><span style=\"color: #000000;\">The builder cancelled the allotment in <strong>2018<\/strong>.<\/span><\/li>\n<li><span style=\"color: #000000;\">The Corporate Insolvency Resolution Process commenced only in <strong>2021<\/strong>.<\/span><\/li>\n<li><span style=\"color: #000000;\">Therefore, by the time insolvency proceedings began, the purchaser no longer possessed any subsisting contractual right in respect of the flat.<\/span><\/li>\n<li><span style=\"color: #000000;\">The Tribunal held that rights which had already been extinguished before CIRP could not be revived merely because insolvency proceedings had subsequently commenced.<\/span><\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Impact on the Insolvency Resolution Process<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">The Tribunal also considered the larger objective of the Insolvency and Bankruptcy Code.<\/span><\/li>\n<li><span style=\"color: #000000;\">The purpose of CIRP is to maximize the value of the corporate debtor&#8217;s assets and facilitate an effective resolution.<\/span><\/li>\n<li><span style=\"color: #000000;\">If purchasers whose allotments had already been cancelled before insolvency were permitted to reclaim units during CIRP, it would create uncertainty for Resolution Applicants and adversely affect the implementation of approved resolution plans.<\/span><\/li>\n<li><span style=\"color: #000000;\">The judgment therefore protects the integrity and certainty of the insolvency resolution process.<\/span><\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Legal Principle Established<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The NCLAT settled an important legal principle:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><strong>A purchaser whose allotment has been validly cancelled before the commencement of insolvency proceedings cannot claim the status of an allottee under the Insolvency and Bankruptcy Code.<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Merely paying a booking amount does not create perpetual rights over the property.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Homebuyer protections under the IBC are available only to persons whose contractual and legal rights continue to subsist on the insolvency commencement date.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>The NCLAT&#8217;s Final Decision<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">After examining the facts and the legal position, the National Company Law Appellate Tribunal dismissed the appeal filed by Parveen Gakhar.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The Tribunal refused to direct the Resolution Professional to register the flat in favour of the Appellant.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">However, recognising that the Appellant had paid an initial booking amount, the Tribunal directed that the <strong>earnest money deposited by her be refunded within two weeks<\/strong>.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">Accordingly:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\"><\/ul>\n<\/li>\n<\/ul>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">the purchaser did not receive the flat;<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">the Resolution Professional was permitted to treat the property as unsold inventory under the Resolution Plan; and<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<ul class=\"wp-block-list\">\n<li style=\"list-style-type: none;\">\n<ul class=\"wp-block-list\">\n<li><span style=\"color: #000000;\">the earnest money was ordered to be refunded.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Practical Lessons for Homebuyers<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">This judgment provides several practical lessons for purchasers of real estate.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h4><span style=\"color: #000000;\"><strong>1. Paying the Booking Amount Is Not Enough<\/strong><\/span><\/h4>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">A booking amount only initiates the transaction.<\/span><\/li>\n<li><span style=\"color: #000000;\">Ownership rights continue only if the purchaser fulfils the contractual payment obligations.<\/span><\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<h4><span style=\"color: #000000;\"><strong>2. Never Ignore Demand Notices<\/strong><\/span><\/h4>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Demand notices and cancellation notices issued by the builder should be taken seriously.<\/span><\/li>\n<li><span style=\"color: #000000;\">Failure to respond may result in permanent loss of allotment.<\/span><\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<h4><span style=\"color: #000000;\"><strong>3. Challenge Cancellation Immediately<\/strong><\/span><\/h4>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">If a purchaser believes that cancellation is illegal or arbitrary, legal proceedings should be initiated without delay.<\/span><\/li>\n<li><span style=\"color: #000000;\">Waiting until insolvency proceedings commence may permanently extinguish available remedies.<\/span><\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<h4><span style=\"color: #000000;\"><strong>4. Insolvency Law Protects Existing Rights<\/strong><\/span><\/h4>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">The Insolvency and Bankruptcy Code protects genuine allottees whose rights exist when CIRP begins.<\/span><\/li>\n<li><span style=\"color: #000000;\">It does not revive contractual rights that have already been terminated.<\/span><\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Why This Judgment Matters<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">This decision is significant because it balances the interests of genuine homebuyers with the objectives of the Insolvency and Bankruptcy Code.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">While Indian courts have consistently recognised homebuyers as financial creditors, this judgment clarifies that such protection is available only to those who continue to hold valid contractual rights.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The ruling also reinforces the principle that contractual obligations bind both parties.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">A purchaser who fails to comply with agreed payment obligations cannot seek equitable relief merely because the builder subsequently enters insolvency.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Conclusion<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">The judgment in <strong>Parveen Gakhar v. Adani Goodhomes Pvt. Ltd.<\/strong> serves as an important reminder that <strong>the protections available under the Insolvency and Bankruptcy Code are not unconditional<\/strong>.<\/span><\/li>\n<li><span style=\"color: #000000;\">A purchaser who defaults on payment, ignores repeated notices, and allows the allotment to be cancelled before commencement of CIRP cannot later revive those rights during insolvency proceedings.<\/span><\/li>\n<li><span style=\"color: #000000;\">The NCLAT has reaffirmed that <strong>insolvency law protects existing legal rights\u2014not rights that have already been extinguished by contractual default.<\/strong><\/span><\/li>\n<\/ul>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e7eebb2 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2016 (IBC) recognizes homebuyers as financial creditors and grants them significant rights during the Corporate [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":685,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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