The Government clarified that the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal (NCLAT) have, in select cases under the Insolvency and Bankruptcy Code (IBC), permitted registration of flats where homebuyers had completed payments and were in possession. These decisions were based on case-specific facts and aimed at protecting the lawful rights of allottees despite the developer undergoing insolvency or defaulting on dues to authorities. In one instance, NCLAT directed the Resolution Professional to execute the sale deed after recovering any pending dues or costs. However, the Government stated that no centralized data is maintained regarding the number of such cases or projects. The response highlights a pro-homebuyer approach while confirming the absence of consolidated tracking of such judicial directions.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
RAJYA SABHA
UNSTARRED QUESTION NO. 3581
ANSWERED ON TUESDAY, THE 24TH MARCH 2026/
[CHAITRA 3, 1948 (SAKA)]
REGISTRATION OF FLATS UNDER IBC
QUESTION
3581. DR. LAXMIKANT BAJPAYEE
Will the Minister of CORPORATE AFFAIRS
be pleased to state:
a. whether National Company Law Tribunal (NCLT) / National Company Law Appellate Tribunal (NCLAT) have given certain orders regarding registration of flats under the Insolvency and Bankruptcy Code (IBC), in cases wherein flats have been completed and flat buyers are under possession of flats on payment of all the dues, to ensure that homebuyers receive valid ownership titles, even if the developer is under insolvency and has not paid dues of the authorities; and
b. if so, the details of residential projects with number of cases in which NCLT/NCLAT have given orders for the registration of flats wherein the developer is under insolvency and not paid dues of the Authorities?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS; AND MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
(HARSH MALHOTRA)
a. As per information provided by National Company Law Tribunal (NCLT), in a few cases, orders have been given for registration of flats in the facts and circumstances of those particular cases in accordance with the Code, rules and regulations thereto, upholding the lawful and subsisting right of the allottees. NCLAT has directed Resolution Professional to execute the sale deed after collecting dues and cost, if any remaining unpaid, in one case.
b. No such information is maintained in the Tribunals.
