NCLT's Landmark Decision Revives Hope for Over 1,000 Homebuyers

The National Company Law Tribunal has approved a resolution plan to complete Universal Buildwell's stalled projects, benefiting over 1,000 homebuyers. With the association of buyers taking charge, units are now expected to be delivered on time, setting a precedent for resolving similar real-estate insolvency issues.

In a landmark judgment, the National Company Law Tribunal (NCLT) has greenlit a resolution plan for the stalled projects of Universal Buildwell Private Limited, marking a significant victory for more than 1,000 homebuyers. The decision allows buyers to join forces through their association to conclude construction in a timely fashion.

The resolution plan received the nod from the NCLT Bench including Justice Ashok Kumar Bhardwaj and Justice Subrata Kumar Dash. Representing the resolution professional were Advocates Swapnil Gupta, Shivambika Sinha, Vaibhav Mendiratta, and the Capital Law Chambers LLP team, while Senior Advocate P Nagesh and Advocate Harshal Kumar represented the homebuyers' interests.

Promoter Raman Puri's Universal Buildwell had initiated several key projects in Faridabad and Gurugram, but failed to deliver, leading to the company's insolvency in 2018. Arrests of absconding ex-promoters in 2024 by Delhi Police's Economic Offences Wing added another dramatic layer to the protracted case.

In an unusual approach, the homebuyers decided to fund the construction of three projects themselves and settle outstanding dues with banks. Atul Kumar Kansal, the appointed Resolution Professional, collaboratively worked with buyers to draft a viable completion strategy.

The Tribunal's decision is a victory for collective action, spearheaded by the legal skill of Sr Adv P Nagesh and Adv Harshal Kumar. This case now stands as a prototype for homebuyers' associations to lead the completion of delayed developments, imparting hope to countless others ensnared in similar predicaments.

(With inputs from agencies.)