Limitation and moratorium under insolvency law: sale deed registration for possession-holding allottees was treated as procedural, not barred.

Limitation under Section 61 of the Insolvency and Bankruptcy Code was examined by reference to the dates of the impugned order, its upload, and filing of the appeal, and the appeal was treated as timely. On moratorium under Section 14, the Tribunal held that in a real estate CIRP, where allottees were already in possession and only execution and registration of sale deeds remained, that step was procedural and did not amount to an impermissible transfer of corporate debtor assets. The Tribunal also stressed protection of homebuyers and directed completion of conveyance after payment of any outstanding dues and charges.

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Issues: (i) Whether the appeal was within limitation under Section 61 of the Insolvency and Bankruptcy Code, 2016. (ii) Whether execution and registration of sale deeds in favour of allottees already in possession during CIRP would violate the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016.

Issue (i): Whether the appeal was within limitation under Section 61 of the Insolvency and Bankruptcy Code, 2016.

Analysis: The period of limitation was examined by reference to the date of the impugned order, the date on which it was uploaded, and the date of filing of the appeal. On the Tribunal's appreciation of the sequence of dates, the appeal was treated as having been filed within the permissible period.

Conclusion: The appeal was held to be within limitation.

Issue (ii): Whether execution and registration of sale deeds in favour of allottees already in possession during CIRP would violate the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016.

Analysis: The Tribunal held that the allottees had been in possession since 2015 and the remaining step was execution of sale deeds. It distinguished a real estate project from a non-real-estate asset context, holding that in a real estate project the sale proceeds form part of business revenue and the registration of deeds is a procedural requirement. On that reasoning, such registration was not treated as a transfer of corporate debtor assets prohibited by moratorium. The Tribunal also relied on the need to protect homebuyers and preserve their interests in CIRP.

Conclusion: The moratorium was held not to bar execution and registration of the sale deeds, and the Resolution Professional was directed to complete the conveyance after collecting any unpaid dues, costs, registration charges, penalty, and incidental costs.

Final Conclusion: The impugned order was set aside and relief was granted to the allottees by directing execution of the sale deeds, with the appeal succeeding in substance.

Ratio Decidendi: In a real estate CIRP, where allottees are already in possession, the mere execution and registration of sale deeds as a procedural step does not amount to an impermissible transfer of the corporate debtor's assets and is not barred by moratorium.

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