Post by REEDLAW Legal Intelligence & Research

The Supreme Court has delivered important clarity on real estate insolvency under the IBC. In Satinder Singh Bhasin v. Col. Gautam Mullick and Others, REEDLAW 2026 SC 01582, the Court held that a joint application under Section 7 filed by homebuyers is maintainable where the statutory threshold is satisfied on the date of valid filing and default arises from failure to deliver lawful possession. A Bench comprising Justice Sanjay Kumar and Justice K. Vinod Chandran reaffirmed that later settlements or withdrawals do not defeat maintainability once the numerical threshold stands met, and upheld joint insolvency proceedings against intrinsically linked corporate debtors involved in an integrated real estate project. It further ruled that notional possession without completion and occupancy certificates has no legal effect. Mr. Shyam Divan, Sr. Advocate, Ms. Neeha Nagpal, Adv., Mr. Malak Manish Bhatt, AOR, Mr. Vishal Gosain, Adv., Mr. Nikunj Mahajan, Adv., Mr. Praney Sharma, Adv., Mr. Adith Deshmukh, Adv., Mr. Arpith Jacob, Adv. and Mr. Gurdeep Singh, Advocate, represented the Appellant. Mr. Atmaram N.S. Nadkarni, Sr. Advocate, Ms. Ruchira Gupta, Adv., Mr. Salvador Santosh Rebello, AOR etc., Ms. Pooja Tripathi, Adv., Mr. Mohit Sham Ali, Adv., Ms. Manisha Gupta, Adv., Ms. Moulishree Pathak, Adv., Ms. Arzu Paul, Adv., Ms. Himanshi Nagpal, Adv., Mr. Adv. Ujjawal Aggarwal and Mr. Utsav tarsolia, Advocate, appeared for the Respondents. Mr. Gopal Sankaranarayanan, Sr. Advocate, Mr. Saket Sikri, Adv., Mr. Nikhil Kohli, Adv., Mr. Nalin Talwar, Adv., Ms. Ritika Gambhir Kohli, AOR, Mr. Ishan Gaur, Adv., Mr. Mani Mehta, Adv., Mr. Manish Singhal, Adv., Mr. Kushank Garg, Adv., Ms. Akshaya Ganpath, Adv., Mr. Ajay Pal Singh Kuller, Adv. and Ms. Saumya Tiwari, Advocate, appeared for the Respondents. Mr. Dhruv Mehta, Sr. Advocate, Ms. Meenakshi Arora, Sr. Advocate, Ms. Payal Chawla, Adv., Mr. Tishampati Sen, Adv., Mr. Shubhanshu Gupta, AOR, Mr. Kartik Pant, Adv., Mr. Chaitanya Singh, Adv., Mr. Raunak Satpathy, Adv., Mr. Keith Varghese, Adv. and Mr. Srijan Sonkar, Advocate, appeared for the Respondents. Mr. Vipin Sanghi, Sr. Advocate, Mr. Abhishek Anand, Adv., Mr. Mandeep Kalra, AOR, Mr. Karan Kohli, Adv., Ms. Palak Kalra, Adv., Ms. Ridhima Mehrotra, Adv., Ms. Radhika Narula, Adv., Ms. Anushna Satapathy, Adv., Ms. Chitrangada Singh, Adv., Ms. Radhika Jalan, Adv., Ms. Widaphi Lyngdoh, Adv., Mr. Yashas J., Adv., Ms. Gauri Rajput, Adv., Ms. Maira Sharma, Adv., Mr. Vaibhav Yadav, Adv., Mr. Paras Mohan Sharma, Adv. and Ms. Shefali Tripathi, Advocate, appeared for the Respondents. Read the full analysis: https://lnkd.in/eFi_9XD2 #IBC #CorporateInsolvency #DebtRecovery #SARFAESI #CommercialLaw #CompanyLaw #RealEstateInsolvency #REEDLAW Stay informed with REEDLAW – Trusted Legal Research Partner Since 1985.