Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: October 5, 2026
Case Overview
The National Company Law Appellate Tribunal (NCLAT) heard an appeal filed by Aastha Flat Buyers' Association against Prashant Agarwal (Resolution Professional of Astha Buildhome Developers Pvt. Ltd.) and others. The appeal challenges the order of the Adjudicating Authority (NCLT) which rejected the resolution plan submitted by the Flat Buyers' Association and directed initiation of liquidation proceedings against the corporate debtor, Astha Buildhome Developers Pvt. Ltd.
The Appellant Association argued that their resolution plan had been approved by the Committee of Creditors (CoC) with a voting share of 95.81%, but was rejected by the Adjudicating Authority on "hyper technical grounds." The Association emphasized that liquidation should be the last resort, particularly for a real estate company where the future of hundreds of homebuyers is at stake.
The NCLAT prima facie agreed with the Appellant's submission that liquidation of the corporate debtor should be considered only when all hope for resolution is lost. The tribunal noted the significant stake of various homebuyers dependent on the project's fate.
Final Outcome
The NCLAT issued notice to all respondents and listed the appeal for admission hearing on November 16, 2026. Most significantly, the tribunal granted interim protection by staying the operation of the impugned liquidation order until the next date of listing. This provides temporary relief to the flat buyers and prevents immediate liquidation proceedings against Astha Buildhome Developers Pvt. Ltd.
Topics: Insolvency Resolution, Real Estate, Homebuyer Protection