Claim under IBC will not survive when Unit Holders Handed Over Possession and Conveyance Deed has Been Executed: NCLAT [Read Order]

The NCLAT ruled that claims under the Insolvency and Bankruptcy Code (IBC) will not survive if unit holders have already been handed over possession and a conveyance deed has been executed. The ruling emphasizes that once possession has been transferred and the legal formalities completed, claims by unit holders or other stakeholders are no longer valid under IBC. This decision reinforces the importance of the legal processes involved in property transfers and the finality of these transactions under the IBC framework. It ensures that claims cannot be made once the possession and conveyance procedures are complete, providing greater legal certainty to businesses and investors involved in such transactions.