When a real-estate developer is admitted into the Corporate Insolvency Resolution Process (CIRP), homebuyers suddenly become "financial creditors" under the Insolvency and Bankruptcy Code, 2016 (IBC). That status comes with a right — to file a claim — but very little clear guidance on how to actually exercise it, or what happens to your money afterward. This guide walks through claim filing, the refund process, and how a claim refund from the RP actually works, stage by stage.
Why homebuyers need to file a claim at all
Once the National Company Law Tribunal (NCLT) admits a CIRP application against a real-estate developer, a moratorium is imposed and an Interim Resolution Professional (IRP) takes charge of the company. Every creditor — including homebuyers who have paid money against an under-construction unit — must formally register their dues by filing a claim. If you don't file, your dues may not be recognised in the resolution plan at all, which directly affects any refund or possession outcome later.
Key point
Homebuyers are classified as financial creditors under Section 5(8)(f) of the IBC (as clarified by the 2018 amendment). This is what gives you standing to file a claim and, later, to vote through your Authorized Representative (AR).
Step-by-step: claim filing with the IRP/RP
-
Watch for the public announcement
Once CIRP begins, the IRP publishes a public announcement (newspapers and the company's website) inviting claims, with a specific claim form and submission deadline — usually within 90 days of the insolvency commencement date, though late claims are sometimes accepted.
-
Use Form CA (for homebuyers/financial creditors in a class)
Homebuyers typically file using Form CA under the CIRP Regulations, since they are usually treated as financial creditors in a class requiring an Authorized Representative.
-
Gather your supporting documents
Builder-buyer agreement, allotment letter, payment receipts, bank statements showing transfers to the developer, and any correspondence (emails, demand letters, possession notices) about the unit.
-
Calculate your claim amount
This usually includes the principal amount paid, plus any interest or compensation you're entitled to under your agreement or applicable law — supported by a clear, payment-wise breakdown.
-
Submit the claim to the IRP/RP
Submit the completed form with annexures within the stated deadline, by the mode specified in the public announcement (email or physical submission, depending on the case).
-
Track verification status
The RP verifies claims and updates the list of creditors. Keep following up — claims are sometimes under-verified or queried, and you may need to respond with clarifications or additional proof.
What is the refund process in real estate insolvency?
Once your claim is filed and verified, what happens next depends on how the CIRP concludes:
- Resolution plan approved: A successful resolution applicant takes over the project, and the approved plan sets out how homebuyers' dues are treated — this may mean possession of the unit, a partial refund, or a combination, according to the distribution mechanism (often referred to as the "waterfall" under Section 53 of the IBC).
- Liquidation: If no resolution plan is approved and the company goes into liquidation, homebuyer dues are paid out of the liquidation estate strictly according to the statutory priority order, which can mean a lower recovery.
- Reverse CIRP / project-wise resolution: In several real-estate cases, NCLT and NCLAT have permitted "reverse CIRP," where the resolution applicant completes construction using homebuyer contributions and delivers possession instead of a straightforward payout — refund outcomes vary case by case.
The refund process, in other words, is not a fixed timeline you can count on in advance — it's tied to how your specific case's resolution plan or liquidation order is structured. This is exactly why staying engaged with claim verification and voting matters throughout the CIRP is so important.
How to claim a refund from the Resolution Professional (RP)
A "claim refund" isn't a separate, one-time application you file after your CIRP claim — it flows from it. Practically, here's how homebuyers pursue it:
-
Ensure your claim is filed and verified
An unverified or unfiled claim generally cannot be included in any refund or distribution calculation, so this step is non-negotiable.
-
Stay engaged through your Authorized Representative (AR)
Homebuyers vote as a class through an AR at the Committee of Creditors (CoC). Voting on resolution plans directly determines refund/possession terms, so understanding what's placed for voting matters.
-
Review the approved resolution plan's treatment of your class
Once a plan is approved, it will specify exact terms for homebuyers — refund percentage, timeline, or possession terms. This document is what governs your actual payout, not general IBC provisions alone.
-
Follow up on disbursement
After approval, disbursement is carried out by the successful resolution applicant or a designated monitoring committee, according to the plan's timeline. Continued follow-up is often necessary in practice.
Where homebuyers most often get stuck
In our experience, the most common issues are: missing the claim deadline, submitting an unverifiable or inconsistent financial calculation, not tracking status after submission, and not understanding what a resolution plan actually says about their class before voting.
How long does the process take?
There's no single answer — it depends on how contested the case is, how many creditor classes are involved, and whether the matter goes to NCLAT on appeal. Some CIRPs resolve within the statutory 330-day timeline; many real-estate cases, given their complexity, take considerably longer. What you can control is making sure your own claim is filed correctly and tracked consistently, so you're not the reason for delay on your end.
Do you need a lawyer to file a claim?
Not necessarily a litigating lawyer for the claim-filing stage itself, but you do need someone who understands the claim form, documentation standards, and calculation method the IRP/RP expects — errors here are a common reason claims get queried or under-verified. This is the gap DSG Consultancy is built to close: we handle claim filing, financial calculations, documentation and RP coordination end-to-end, so you're not learning CIRP procedure from scratch while also chasing your own money.
Need help with your claim or refund?
Share your project name and current CIRP stage, and we'll walk you through exactly what applies to your case.