{"id":686,"date":"2026-08-03T12:11:54","date_gmt":"2026-08-03T12:11:54","guid":{"rendered":"https:\/\/mudralegal.com\/blog\/?p=686"},"modified":"2026-08-03T12:16:57","modified_gmt":"2026-08-03T12:16:57","slug":"can-a-lender-claim-ownership-of-flats-without-a-registered-sale-deed-nclat-clarifies-in-gaurav-katiyar-v-nisus-finance-investment-managers-llp","status":"publish","type":"post","link":"https:\/\/mudralegal.com\/blog\/can-a-lender-claim-ownership-of-flats-without-a-registered-sale-deed-nclat-clarifies-in-gaurav-katiyar-v-nisus-finance-investment-managers-llp\/","title":{"rendered":"Can a Lender Claim Ownership of Flats Without a Registered Sale Deed? NCLAT Clarifies in Gaurav Katiyar v. Nisus Finance &#038; Investment Managers LLP"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"686\" class=\"elementor elementor-686\">\n\t\t\t\t<div class=\"elementor-element elementor-element-2e4cca12 e-flex e-con-boxed e-con e-parent\" data-id=\"2e4cca12\" 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-404be6ad elementor-widget elementor-widget-text-editor\" data-id=\"404be6ad\" 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;\">In real estate insolvency proceedings, conflicts often arise between <strong>financial lenders<\/strong> and <strong>homebuyers<\/strong> over ownership of project assets. A common question is:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Can a lender claim exclusive ownership of flats merely because they were allotted under an investment agreement, even if no registered sale deed or Builder Buyer Agreement exists?<\/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 <strong>National Company Law Appellate Tribunal (NCLAT)<\/strong> answered this important question in <strong>Gaurav Katiyar v. Nisus Finance and Investment Managers LLP &amp; Ors. (Company Appeal (AT) (Insolvency) No. 593 of 2021)<\/strong>, decided on <strong>25 January 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>transactions which are, in substance, loans secured by project assets cannot be treated as genuine sales merely because they are described as such in the documents.<\/strong> It further ruled that <strong>without a registered conveyance, no legal ownership over immovable property passes to the lender.<\/strong><\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The judgment is a significant precedent protecting the interests of homebuyers and reinforcing the principle that courts will examine the <strong>real nature of a transaction rather than its label.<\/strong><\/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;\">A real estate developer entered into financial arrangements with <strong>Nisus Finance and Investment Managers LLP<\/strong> and <strong>Beacon Trusteeship Limited<\/strong> for raising funds to develop its housing project.<\/span><\/li>\n<li><span style=\"color: #000000;\">As part of these arrangements, <strong>268 flats<\/strong> were earmarked in favour of the lenders.<\/span><\/li>\n<li><span style=\"color: #000000;\">When the developer subsequently entered the <strong>Corporate Insolvency Resolution Process (CIRP)<\/strong> under the Insolvency and Bankruptcy Code, 2016 (IBC), the Resolution Professional prepared the <strong>Information Memorandum<\/strong>, which included these 268 flats as assets of the Corporate Debtor.<\/span><\/li>\n<li><span style=\"color: #000000;\">The lenders objected.<\/span><\/li>\n<li><span style=\"color: #000000;\">According to them, the flats had already been transferred in their favour under the investment agreements and therefore could not be treated as assets available for resolution.<\/span><\/li>\n<li><span style=\"color: #000000;\">They argued that the Resolution Professional should exclude these flats from the insolvency estate.<\/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>The Questions 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 answer three important legal questions:<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h4><span style=\"color: #000000;\"><strong>1. Were the transactions genuine sales or merely financial arrangements?<\/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 Tribunal had to determine whether the agreements actually transferred ownership of the flats or merely created security for repayment of loans.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h4><span style=\"color: #000000;\"><strong>2. Can ownership of immovable property pass without registration?<\/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;\">Even if the parties described the transaction as a sale, could ownership legally pass in the absence of a registered document?<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h4><span style=\"color: #000000;\"><strong>3. Can a creditor challenge the Resolution Plan after approving it?<\/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 Tribunal also examined whether a lender who had already voted in favour of the Resolution Plan could later seek exclusion of those very assets from the insolvency process.<\/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<ul>\n<li><span style=\"color: #000000;\">The NCLAT carefully analyzed the structure of the transaction.<\/span><\/li>\n<li><span style=\"color: #000000;\">Although the agreements referred to the allotment of flats, the surrounding circumstances indicated that the arrangement was essentially a financing transaction.<\/span><\/li>\n<li><span style=\"color: #000000;\">The Tribunal noted that the so-called purchase price of the flats was approximately <strong>one-third of their actual market value.<\/strong><\/span><\/li>\n<li><span style=\"color: #000000;\">Such a substantial difference indicated that the parties never intended an actual sale.<\/span><\/li>\n<li><span style=\"color: #000000;\">Instead, the flats were being used as <strong>security for repayment of financial assistance<\/strong> extended to the developer.<\/span><\/li>\n<li><span style=\"color: #000000;\">The Tribunal therefore looked beyond the wording of the agreements and examined their true commercial purpose.<\/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<h4><span style=\"color: #000000;\"><strong>Substance Prevails Over Form<\/strong><\/span><\/h4>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">One of the most significant principles reaffirmed by the judgment is that <strong>courts examine the substance of a transaction rather than merely its description.<\/strong><\/span><\/li>\n<li><span style=\"color: #000000;\">Merely describing an agreement as a &#8220;sale&#8221; does not make it a genuine sale.<\/span><\/li>\n<li><span style=\"color: #000000;\">Where the surrounding circumstances demonstrate that the real intention was to secure repayment of a loan, the transaction will be treated accordingly.<\/span><\/li>\n<li><span style=\"color: #000000;\">In this case, the Tribunal concluded that the flats were never intended to be sold in the ordinary commercial sense.<\/span><\/li>\n<li><span style=\"color: #000000;\">Instead, they formed part of the security mechanism for financing the project.<\/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>Why Registration Was Crucial<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">The lenders argued that they had already acquired ownership of the flats.<\/span><\/li>\n<li><span style=\"color: #000000;\">The Tribunal rejected this contention.<\/span><\/li>\n<li><span style=\"color: #000000;\">Referring to the <strong>Transfer of Property Act, 1882<\/strong> and the <strong>Registration Act, 1908<\/strong>, the NCLAT observed that ownership of immovable property valued above \u20b9100 can pass only through a <strong>registered instrument<\/strong>.<\/span><\/li>\n<li><span style=\"color: #000000;\">The agreements relied upon by the lenders had <strong>not been registered<\/strong>.<\/span><\/li>\n<li><span style=\"color: #000000;\">Consequently,\u00a0<\/span>no legal title had passed in their favour.<\/li>\n<li><span style=\"color: #000000;\">The Tribunal made it clear that unregistered builder-buyer agreements or similar documents cannot create ownership rights in immovable property where registration is mandatory under law.<\/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<h3><span style=\"color: #000000;\"><strong>Why Were the Flats Included in the Insolvency Estate?<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Since no legal ownership had passed to the lenders, the Tribunal held that the flats continued to remain assets of the Corporate Debtor.<\/span><\/li>\n<li><span style=\"color: #000000;\">Accordingly,\u00a0<\/span><span style=\"color: #000000; font-style: inherit; font-weight: inherit;\">the Resolution Professional had correctly included them in the Information Memorandum prepared under the Insolvency and Bankruptcy Code.<\/span><\/li>\n<li><span style=\"color: #000000;\">These assets therefore formed part of the insolvency estate available for implementation of the approved 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<h3><span style=\"color: #000000;\"><strong>Can a Creditor Change Its Stand After Approving the Resolution Plan?<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">An equally important issue arose from the conduct of the lenders themselves.<\/span><\/li>\n<li><span style=\"color: #000000;\">The Tribunal found that Nisus Finance had actively participated in the meetings of the <strong>Committee of Creditors (CoC)<\/strong>.<\/span><\/li>\n<li><span style=\"color: #000000;\">More importantly, t<\/span><span style=\"color: #000000; font-style: inherit; font-weight: inherit;\">he lender had <\/span><strong style=\"color: #000000; font-style: inherit;\">voted in favour of the Resolution Plan<\/strong><span style=\"color: #000000; font-style: inherit; font-weight: inherit;\">, which treated these flats as assets belonging to the Corporate Debtor.<\/span><\/li>\n<li><span style=\"color: #000000;\">After approving the Resolution Plan, the lenders attempted to argue that the flats actually belonged to them.<\/span><\/li>\n<li><span style=\"color: #000000;\">The Tribunal refused to permit this.<\/span><\/li>\n<li><span style=\"color: #000000;\">It observed that once a creditor knowingly approves a resolution plan, it cannot subsequently adopt an inconsistent position by seeking exclusion of assets that formed part of the very plan it had approved.<\/span><\/li>\n<li><span style=\"color: #000000;\">Such conduct would undermine the certainty and finality of insolvency proceedings.<\/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<h4><span style=\"color: #000000;\"><strong>Protection of Homebuyers<\/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 Tribunal also considered the interests of genuine homebuyers.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">It noted that many purchasers had:<\/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;\">paid the full consideration,<\/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;\">taken possession of their flats, 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;\">were already residing in the project.<\/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;\">Allowing one financial lender to claim exclusive ownership over a large number of flats would adversely affect the interests of numerous homebuyers and other stakeholders.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The Insolvency and Bankruptcy Code seeks to balance the rights of all creditors and stakeholders rather than permitting one creditor to obtain an unfair advantage.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">This consideration also weighed heavily in the Tribunal&#8217;s decision.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Legal Principles 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 judgment lays down several important legal principles.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h4><span style=\"color: #000000;\"><strong>1. Substance-Over-Form<\/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;\">Courts will determine the true nature of a transaction by examining its commercial purpose rather than merely relying upon the terminology used by the parties.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h4><span style=\"color: #000000;\"><strong>2. Registration Is Mandatory<\/strong><\/span><\/h4>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Ownership of immovable property cannot pass without registration wherever the law requires a registered instrument.<\/span><\/li>\n<li><span style=\"color: #000000;\">Unregistered agreements cannot confer legal title.<\/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. Finality of Resolution Plans<\/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;\">A creditor who has approved a resolution plan cannot subsequently seek to remove assets forming part of that approved plan merely because doing so would benefit the creditor individually.<\/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 applicable legal principles, the National Company Law Appellate Tribunal allowed the appeal.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\">The Tribunal:<\/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;\">set aside the earlier order that had directed transfer of <strong>205 flats<\/strong> to the lenders;<\/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;\">held that the flats continued to remain assets of the corporate debtor;<\/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;\">directed that they should remain part of the approved 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;\">protected the interests of all stakeholders, including homebuyers and other creditors.<\/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 decision ensured that the insolvency resolution process would proceed in accordance with the approved Resolution Plan rather than allowing one lender to claim exclusive ownership over project assets.<\/span><\/p>\n<p><span style=\"color: #000000;\"><\/span><\/p>\n<h3><span style=\"color: #000000;\"><strong>Practical Lessons for Developers, Lenders, and Homebuyers<\/strong><\/span><\/h3>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<h4><span style=\"color: #000000;\"><strong>For Financial Institutions<\/strong><\/span><\/h4>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Before claiming ownership over project assets, lenders should ensure that transactions comply with all legal requirements, including registration wherever necessary.<\/span><\/li>\n<li><span style=\"color: #000000;\">Merely describing an agreement as a sale may not be sufficient.<\/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>For Developers<\/strong><\/span><\/h4>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">Financing arrangements should be carefully structured.<\/span><\/li>\n<li><span style=\"color: #000000;\">Using sale agreements merely as security documents may create disputes during insolvency proceedings.<\/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>For Homebuyers<\/strong><\/span><\/h4>\n<p class=\"wp-block-paragraph\"><span style=\"color: #000000;\"><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">The judgment provides reassurance that insolvency courts will consider the interests of genuine purchasers who have paid consideration and acquired legitimate rights.<\/span><\/li>\n<li><span style=\"color: #000000;\">Courts are unlikely to permit financing arrangements to override the rights of bona fide homebuyers.<\/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>For Resolution Professionals<\/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 decision reinforces that assets should be included in the Information Memorandum based upon their true legal ownership rather than merely the labels used in commercial documents.<\/span><\/p>\n<p><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<ul>\n<li><span style=\"color: #000000;\">This judgment strengthens three important principles of insolvency law.<\/span><\/li>\n<li><span style=\"color: #000000;\">First, it prevents lenders from disguising secured financing arrangements as property sales.<\/span><\/li>\n<li><span style=\"color: #000000;\">Second, it reinforces the mandatory requirement of registration for transfer of immovable property.<\/span><\/li>\n<li><span style=\"color: #000000;\">Third, it preserves certainty in the Corporate Insolvency Resolution Process by preventing creditors from changing their position after approving a Resolution Plan.<\/span><\/li>\n<li><span style=\"color: #000000;\">The decision ultimately protects the collective interests of all stakeholders instead of permitting individual creditors to obtain disproportionate benefits.<\/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>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 decision in <strong>Gaurav Katiyar v. Nisus Finance and Investment Managers LLP<\/strong> is a significant judgment for the real estate and insolvency sectors.<\/span><\/li>\n<li><span style=\"color: #000000;\">The NCLAT reaffirmed that <strong>courts will always examine the substance of a transaction over its form<\/strong>, that <strong>legal ownership of immovable property cannot pass without a registered instrument<\/strong>, and that <strong>creditors are bound by the Resolution Plans they approve.<\/strong><\/span><\/li>\n<li><span style=\"color: #000000;\">For homebuyers, the judgment is reassuring because it prevents project assets from being diverted through disguised financing arrangements. For lenders and developers, it highlights the importance of properly documenting and registering transactions in accordance with law.<\/span><\/li>\n<li><span style=\"color: #000000;\">As insolvency disputes in the real estate sector continue to evolve, this judgment serves as an important reminder that <strong>legal rights are determined by the true nature of a transaction\u2014not merely by the language chosen by the parties.<\/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>\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-a230f2a elementor-shape-rounded elementor-grid-0 e-grid-align-center elementor-widget elementor-widget-social-icons\" data-id=\"a230f2a\" data-element_type=\"widget\" data-widget_type=\"social-icons.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"elementor-social-icons-wrapper elementor-grid\" role=\"list\">\n\t\t\t\t\t\t\t<span class=\"elementor-grid-item\" role=\"listitem\">\n\t\t\t\t\t<a class=\"elementor-icon elementor-social-icon elementor-social-icon-youtube elementor-repeater-item-6be37ac\" href=\"https:\/\/www.youtube.com\/channel\/UCBYhCOJ-ZtiZDCt2NJRz2nA\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-screen-only\">Youtube<\/span>\n\t\t\t\t\t\t<svg class=\"e-font-icon-svg e-fab-youtube\" viewBox=\"0 0 576 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M549.655 124.083c-6.281-23.65-24.787-42.276-48.284-48.597C458.781 64 288 64 288 64S117.22 64 74.629 75.486c-23.497 6.322-42.003 24.947-48.284 48.597-11.412 42.867-11.412 132.305-11.412 132.305s0 89.438 11.412 132.305c6.281 23.65 24.787 41.5 48.284 47.821C117.22 448 288 448 288 448s170.78 0 213.371-11.486c23.497-6.321 42.003-24.171 48.284-47.821 11.412-42.867 11.412-132.305 11.412-132.305s0-89.438-11.412-132.305zm-317.51 213.508V175.185l142.739 81.205-142.739 81.201z\"><\/path><\/svg>\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t\t\t\t<span class=\"elementor-grid-item\" role=\"listitem\">\n\t\t\t\t\t<a class=\"elementor-icon elementor-social-icon elementor-social-icon-instagram elementor-repeater-item-040f9b6\" href=\"https:\/\/www.instagram.com\/mudralegal\/\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-screen-only\">Instagram<\/span>\n\t\t\t\t\t\t<svg class=\"e-font-icon-svg e-fab-instagram\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M224.1 141c-63.6 0-114.9 51.3-114.9 114.9s51.3 114.9 114.9 114.9S339 319.5 339 255.9 287.7 141 224.1 141zm0 189.6c-41.1 0-74.7-33.5-74.7-74.7s33.5-74.7 74.7-74.7 74.7 33.5 74.7 74.7-33.6 74.7-74.7 74.7zm146.4-194.3c0 14.9-12 26.8-26.8 26.8-14.9 0-26.8-12-26.8-26.8s12-26.8 26.8-26.8 26.8 12 26.8 26.8zm76.1 27.2c-1.7-35.9-9.9-67.7-36.2-93.9-26.2-26.2-58-34.4-93.9-36.2-37-2.1-147.9-2.1-184.9 0-35.8 1.7-67.6 9.9-93.9 36.1s-34.4 58-36.2 93.9c-2.1 37-2.1 147.9 0 184.9 1.7 35.9 9.9 67.7 36.2 93.9s58 34.4 93.9 36.2c37 2.1 147.9 2.1 184.9 0 35.9-1.7 67.7-9.9 93.9-36.2 26.2-26.2 34.4-58 36.2-93.9 2.1-37 2.1-147.8 0-184.8zM398.8 388c-7.8 19.6-22.9 34.7-42.6 42.6-29.5 11.7-99.5 9-132.1 9s-102.7 2.6-132.1-9c-19.6-7.8-34.7-22.9-42.6-42.6-11.7-29.5-9-99.5-9-132.1s-2.6-102.7 9-132.1c7.8-19.6 22.9-34.7 42.6-42.6 29.5-11.7 99.5-9 132.1-9s102.7-2.6 132.1 9c19.6 7.8 34.7 22.9 42.6 42.6 11.7 29.5 9 99.5 9 132.1s2.7 102.7-9 132.1z\"><\/path><\/svg>\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t\t\t\t<span class=\"elementor-grid-item\" role=\"listitem\">\n\t\t\t\t\t<a class=\"elementor-icon elementor-social-icon elementor-social-icon-linkedin elementor-repeater-item-54fbd3a\" href=\"https:\/\/www.linkedin.com\/company\/mudra-legal\/posts\/?feedView=all&#038;viewAsMember=true\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-screen-only\">Linkedin<\/span>\n\t\t\t\t\t\t<svg class=\"e-font-icon-svg e-fab-linkedin\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 32H31.9C14.3 32 0 46.5 0 64.3v383.4C0 465.5 14.3 480 31.9 480H416c17.6 0 32-14.5 32-32.3V64.3c0-17.8-14.4-32.3-32-32.3zM135.4 416H69V202.2h66.5V416zm-33.2-243c-21.3 0-38.5-17.3-38.5-38.5S80.9 96 102.2 96c21.2 0 38.5 17.3 38.5 38.5 0 21.3-17.2 38.5-38.5 38.5zm282.1 243h-66.4V312c0-24.8-.5-56.7-34.5-56.7-34.6 0-39.9 27-39.9 54.9V416h-66.4V202.2h63.7v29.2h.9c8.9-16.8 30.6-34.5 62.9-34.5 67.2 0 79.7 44.3 79.7 101.9V416z\"><\/path><\/svg>\t\t\t\t\t<\/a>\n\t\t\t\t<\/span>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>In real estate insolvency proceedings, conflicts often arise between financial lenders and homebuyers over ownership of project assets. A common [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":694,"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 center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"_joinchat":[],"footnotes":""},"categories":[1],"tags":[],"class_list":["post-686","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"rttpg_featured_image_url":{"full":["https:\/\/mudralegal.com\/blog\/wp-content\/uploads\/2026\/08\/Add-a-heading-36.png",678,325,false],"landscape":["https:\/\/mudralegal.com\/blog\/wp-content\/uploads\/2026\/08\/Add-a-heading-36.png",678,325,false],"portraits":["https:\/\/mudralegal.com\/blog\/wp-content\/uploads\/2026\/08\/Add-a-heading-36.png",678,325,false],"thumbnail":["https:\/\/mudralegal.com\/blog\/wp-content\/uploads\/2026\/08\/Add-a-heading-36-150x150.png",150,150,true],"medium":["https:\/\/mudralegal.com\/blog\/wp-content\/uploads\/2026\/08\/Add-a-heading-36-300x144.png",300,144,true],"large":["https:\/\/mudralegal.com\/blog\/wp-content\/uploads\/2026\/08\/Add-a-heading-36.png",678,325,false],"1536x1536":["https:\/\/mudralegal.com\/blog\/wp-content\/uploads\/2026\/08\/Add-a-heading-36.png",678,325,false],"2048x2048":["https:\/\/mudralegal.com\/blog\/wp-content\/uploads\/2026\/08\/Add-a-heading-36.png",678,325,false]},"rttpg_author":{"display_name":"Mudralegal","author_link":"https:\/\/mudralegal.com\/blog\/author\/mudralegal\/"},"rttpg_comment":0,"rttpg_category":"<a href=\"https:\/\/mudralegal.com\/blog\/category\/uncategorized\/\" rel=\"category tag\">Uncategorized<\/a>","rttpg_excerpt":"In real estate insolvency proceedings, conflicts often arise between financial lenders and homebuyers over ownership of project assets. A common [&hellip;]","_links":{"self":[{"href":"https:\/\/mudralegal.com\/blog\/wp-json\/wp\/v2\/posts\/686","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mudralegal.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudralegal.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudralegal.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudralegal.com\/blog\/wp-json\/wp\/v2\/comments?post=686"}],"version-history":[{"count":8,"href":"https:\/\/mudralegal.com\/blog\/wp-json\/wp\/v2\/posts\/686\/revisions"}],"predecessor-version":[{"id":695,"href":"https:\/\/mudralegal.com\/blog\/wp-json\/wp\/v2\/posts\/686\/revisions\/695"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mudralegal.com\/blog\/wp-json\/wp\/v2\/media\/694"}],"wp:attachment":[{"href":"https:\/\/mudralegal.com\/blog\/wp-json\/wp\/v2\/media?parent=686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudralegal.com\/blog\/wp-json\/wp\/v2\/categories?post=686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudralegal.com\/blog\/wp-json\/wp\/v2\/tags?post=686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}