Authority: Supreme Court of India

Order Date: 29-07-2026

Case Overview

  • Parties: Appellant – Ravindra Kumar Singh & Ors (home buyers of the "NCR Greens" project). Respondent – Punjab and Sind Bank & Ors, including Siddharth Build Home Private Limited (the developer, respondent No.4).
  • Background: The appeal challenges the order dated 09.09.2025 of the NCLAT which dismissed IA No.3206/2025 and Company Appeal No.1041/2025 filed by Punjab and Sind Bank. The NCLAT had earlier permitted the developer to complete the "NCR Greens" project within six months, subject to approval by the Committee of Creditors (CoC), and had rejected a settlement proposal for the related "Estella" project.
  • Project Status: Ten towers of "NCR Greens" are erected; approximately 400 home‑buyers have been given possession. Out of 653 total units, 415 units have already been handed over. On 23.11.2023, possession of 103 units was issued. The developer owes the bank roughly Rs 119 crore, for which CIRP proceedings have been ordered.
  • NCLAT Findings: Paragraphs 26‑27 of the NCLAT order (05.05.2026) directed that the promoter may complete the project within six months, provided the CoC (including Punjab & Sind Bank) approves the plan. If approval is not granted, insolvency proceedings would be initiated.
  • Court Directions: The Court noted that the promoter must deposit 10 % of the proposed amount of Rs 35 crore, i.e., Rs 3.5 crore, with Punjab & Sind Bank within one week. The deposit is to be held pending the bank’s consideration of the completion proposal. The Court clarified that the amount cannot be appropriated without its permission.
  • Additional Observations: An FIR has been registered against the developers, who are reported to be absconding. The Court warned that any further difficulty to home‑buyers could result in arrests of responsible persons. CIRP proceedings are to continue expeditiously, subject to any appeal by the developer.
  • Future Hearing: The matter is listed for further hearing on 09-09-2026.

Final Outcome

  • The developer is ordered to deposit Rs 3.5 crore with Punjab & Sind Bank within one week.
  • The promoter is permitted to complete the "NCR Greens" project within six months, subject to CoC approval.
  • If CoC approval is not obtained, the Court will direct appropriate insolvency proceedings for the project.
  • The Court cautioned that absconding developers may face arrest, and CIRP will proceed without undue delay.

Topics: Insolvency, Real Estate