Protecting Home Buyer Rights: Navigating Claims Against Builders Under IBC

Buying a home is one of the biggest investments that a person can make in their lifetime. It is a dream come true for many people. However, sometimes things don't go as planned, and home buyers can face issues with their builders. In such cases, it is important to know how to file a home buyer claim against builder under the Insolvency and Bankruptcy Code (IBC).

The IBC was introduced in India in 2016 to provide a time-bound process for resolving insolvency cases. It is a legal framework that helps to protect the interests of creditors, including home buyers. In this article, we will discuss the steps that a home buyer can take to claim against a builder under the IBC.

Steps for Filing a Claim Against a Builder Under the IBC

Step 1: Filing a Claim with the Insolvency Resolution Professional (IRP)

The first step in claiming against a builder under the IBC provisions is to file a claim with the IRP. The IRP is appointed by the National Company Law Tribunal (NCLT) to manage the affairs of the builder during the insolvency process. The home buyer needs to file the claim within 30 days of the builder being admitted into the insolvency process.

The claim should include all the relevant details, such as the amount owed, the date of the agreement, and any other supporting documents. It is important to ensure that the claim is accurate and complete as any errors or omissions could result in the claim being rejected.

Step 2: Attending the Committee of Creditors (CoC) Meetings

Once the claim is filed, the home buyer will receive an invitation to attend the CoC meetings. The CoC is a group of creditors that is responsible for making decisions about the insolvency process. The home buyer can attend the meetings and participate in the discussions.

At the meetings, the CoC will discuss the claims submitted by the creditors, including the home buyer. The CoC will decide on the amount of money that the builder owes to each creditor and how the money will be distributed. The home buyer should ensure that they attend the meetings and provide any additional information that may be required.

Step 3: Filing a Petition with the NCLT

If the home buyer is not satisfied with the decision of the CoC, they can file a petition with the NCLT. The NCLT is a specialised court that handles insolvency cases. The petition should include all the relevant details, such as the amount owed, the reasons for the dispute, and any supporting documents.

The NCLT will review the petition and make a decision based on the evidence presented. The home buyer should ensure that they have a strong case and provide all the necessary evidence to support their claim.

Step 4: Taking Legal Action

If the home buyer is still not satisfied with the decision of the NCLT, they can take legal action against the builder. The legal action can be in the form of a civil suit or criminal complaint, depending on the nature of the dispute.

It is important to note that taking legal action can be a lengthy and costly process. The home buyer should carefully consider the pros and cons before taking this step.

Conclusion

Filing a homebuyer claim against builder can be a complex process, but it is important for home buyers to know their rights and take the necessary steps to protect their interests. By filing a claim with the IRP, attending the CoC meetings, and taking legal action if necessary, home buyers can ensure that their claims are heard and that they receive the compensation they deserve.

Claim Against Your Builder with Confidence — Ancoraa Resolution is Here to Help!

If you're a home buyer who's been wronged by your builder, Ancoraa Resolution is your go-to legal partner. Our team of experienced real estate lawyers can help you navigate the complexities of the Insolvency and Bankruptcy Code (IBC) and claim what's rightfully yours. Whether you need assistance filing a claim with the Insolvency Resolution Professional (IRP), attending Committee of Creditors (CoC) meetings, or taking legal action, we've got you covered.

With Ancoraa Resolution by your side, you can swiftly work the process of a home buyer claim against builder with confidence and peace of mind.