In a major relief for two Bengaluru residents who have been fighting for their promised home for more than a decade, the Supreme Court on Monday ordered the builder to finally hand over possession of their apartment in Mohali. The case revolved around delayed delivery by IREO’s group company Puma Realtors, which had left several homebuyers in limbo.
Background
Amit Nehra and his co-appellant booked an apartment in 2010 at the IREO Rise (Gardenia) project in Sector 99, SAS Nagar, Mohali. By 2011, they had paid nearly the entire amount-over ₹57.5 lakh out of the total cost of ₹60 lakh. The builder, however, failed to deliver possession by the promised date of November 2013.
Frustrated, the buyers initially approached the Chandigarh Consumer Forum, but the case was pushed into insolvency proceedings after the National Company Law Tribunal admitted a bankruptcy petition against the developer in 2018. The buyers then filed their claims before the Resolution Professional, but disputes arose over whether their claim was filed in time.
Court’s Observations
The bench, comprising Justices Sanjay Kumar and Satish Chandra Sharma, noted that while the company contested the timing of the buyers’ claim, the essential fact was that the claim had been verified, admitted, and listed in the creditors’ register by April 2020.
“The publication of the list of financial creditors is an act in discharge of a statutory duty. It cannot be reduced to a meaningless formality,” the bench observed.
The Court rejected the argument that the buyers should be treated as “belated claimants” entitled only to a 50% refund. Instead, it pointed out that they had already paid almost the full consideration and their names were duly reflected in official records.
Highlighting the plight of ordinary citizens, the bench remarked, “To deny them possession today, despite their claim having been duly verified and admitted, would inflict unfair and unwarranted prejudice.”
Decision
Setting aside orders of both the NCLT and NCLAT, the Supreme Court directed the successful resolution applicants-One City Infrastructure Pvt. Ltd. and APM Infrastructure Pvt. Ltd.-to execute the conveyance deed and hand over Apartment No. GBD-00-001, Block D, IREO Rise (Gardenia), Mohali, to the appellants within two months.
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With this ruling, the buyers have secured not just a refund, but the actual home they fought for over 14 years. The Court, however, clarified that its decision would not affect other related appeals, including one dismissed earlier this year.
Case: Amit Nehra & Anr. v. Pawan Kumar Garg & Ors.
(Civil Appeal No. 4296 of 2025, Supreme Court of India)
Date of Judgment: September 9, 2025
