No Protection Under Unregistered Sale Agreement, But Claim Must be Admitted under IBC Liquidation Process: NCLAT

The NCLAT (National Company Law Appellate Tribunal) has ruled that "no protection under an unregistered sale agreement" but the "claim must be admitted under IBC liquidation process." This decision clarifies that while an unregistered sale agreement may not grant full ownership protection or specific performance rights, the financial claim arising from such an agreement can still be recognized and admitted as a valid claim during the liquidation process under the Insolvency and Bankruptcy Code (IBC). This ensures that genuine creditors are not left out due to technicalities in property registration.