Homebuyers’ Interest Paramount in Real Estate Insolvency: Allahabad HC Orders Revival of Stalled Greater Noida Project

The Allahabad High Court has said that protecting homebuyers’ interests must be the first priority when a real estate company faces insolvency, as it ordered the revival of a stalled group housing project in Greater Noida.

The bench of Justice Arun Kumar, deciding a petition filed by Bulland Realtors Pvt. Ltd., observed that homebuyers are “vital stakeholders” in any housing insolvency process and that no resolution plan can move forward unless the cancelled land is restored.

Court said that if such restoration does not happen, the company would go into liquidation, leaving hundreds of homebuyers at a loss.

The case involved a project in Sector 10, Greater Noida, where Bulland Realtors was allotted a 19,000-square-metre plot (GH-02B-1) under a sub-lease in 2014. The company later defaulted on its lease rent payments, leading the Greater Noida Industrial Development Authority (GNIDA) to cancel the lease in January 2023. The developer challenged this decision, but the State Government rejected its appeal in November 2024.

Meanwhile, one of the company’s financial creditors, Nimble Credit Cooperative Society Ltd., filed insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). The National Company Law Tribunal (NCLT), New Delhi, appointed a Resolution Professional and later a Committee of Creditors (CoC), which approved a resolution plan submitted by Saviour Builders Pvt. Ltd. in March 2024. The plan is still pending final approval by the NCLT.

The High Court, while hearing the developer’s challenge to the lease cancellation, directed in May 2025 that the GNIDA and the parties explore a settlement. A committee under the GNIDA Chief Executive Officer was formed, and by July 2025, a fresh agreement was reached under the Uttar Pradesh Government’s policy dated December 21, 2023, based on the Amitabh Kant Committee Report.

Under this settlement, Saviour Builders agreed to pay Rs. 80.01 crore towards the project’s revival with Rs. 20 crore (25% of the total dues) to be deposited immediately. The remaining amount would be paid in two six-monthly instalments over a year. The payment was made as directed by the High Court, which held the money in deposit during the proceedings.

Justice Arun Kumar, in his detailed order passed on October 30, 2025, said that the State Government had not followed the 2023 policy, which was meant to help revive stalled housing projects and protect homebuyers. Court noted that the policy was binding on all development authorities and that ignoring it had deprived homebuyers of their rights to timely possession and relief.

“The primary concern in the insolvency resolution process of a real estate company is the interest of homebuyers,” the judge observed. “Without restoration of the cancelled plot, any resolution plan cannot be approved… In the absence of any land available with the corporate debtor, no revival of the housing plan can take place, which would adversely affect homebuyers," court added. 

Holding that the agreement between GNIDA, the Resolution Professional, and the resolution applicant gave “a ray of hope for revival,” court set aside the State Government’s order rejecting the developer’s plea. It directed that the Rs. 20 crore deposited before the court be released to GNIDA and that the authority restore the lease deed in favour of Bulland Realtors once payment is received.

Court further ordered that the balance dues be paid as per the terms of the July 2025 settlement and the State’s 2023 policy. It also clarified that the deposit made by Saviour Builders would not automatically entitle it to claim ownership or project control until the NCLT formally approves the resolution plan.

Two separate applications, one by a homebuyer and another by a rival bidder seeking to join the case were rejected by the court. It said their concerns could be addressed through proceedings before the NCLT under the IBC framework.

Case Title: Bulland Realtors Private Limited vs. State Of U.P. And 4 Others

Judgment Date: October 30, 2025

Bench: Justice Arun Kumar