NCLT Delhi Upholds Different Treatment Of BBA And MoU Holders Under Resolution Plan, Dismisses Homebuyer's Plea

The Delhi bench of the National Company Law Tribunal (NCLT) has held that a resolution plan can treat real estate allottees (home buyers) holding Builder-Buyer Agreements (BBAs) differently from those holding Memoranda of Understanding (MoUs), depending on their contractual rights and obligations.

The bench of Judicial Member Mahendra Khandelwal and Technical Member Atul Chaturvedi observed, “The mere fact that both categories broadly fall within the category of real estate allottees does not mean that the Resolution Plan is prohibited from recognising distinctions arising from the nature and terms of the underlying contractual arrangements. The classification has to be examined with reference to the rights and obligations flowing from the respective documents and the treatment contemplated under the Resolution Plan.”

The ruling came in a challenge to the resolution plan for Spaze Towers Pvt. Ltd. Homebuyer Mukesh Kakar sought rejection of the plan submitted by Siddharni Estate and fresh bids.

The plan proposed a one-time settlement of ₹15 crore for unit holders. It allocated ₹12 crore to BBA holders and ₹2 crore to MoU holders.

Kakar, an MoU holder, argued that he would receive only around ₹2–4 lakh against his claim of ₹52.59 lakh. Kakar argued that the plan unfairly favoured BBA holders over MoU holders and offered little prospect of project completion. The tribunal held that contractual differences could justify different treatment and that unequal recoveries alone did not violate the IBC.

It said project completion was not mandatory under every resolution plan, with viability primarily for the CoC to assess. On conflict-of-interest concerns involving Siddharni Estate's partner and the project's landowner, it said their relationship alone did not establish ineligibility. The application was dismissed.