India, Sept. 17 -- Individual homebuyers cannot seek a refund under the Real Estate (Regulation and Development) Act (RERA) if their claim conflicts with an insolvency resolution plan approved by a majority of homebuyers, the Mumbai bench of the National Company Law Tribunal (NCLT) has held in a recent order.

The tribunal also said that a new developer taking over a stalled project through insolvency cannot necessarily be required to honour every contractual term agreed between the original developer and homebuyers.

The Mumbai bench was hearing a plea filed by four homebuyers in Spenta Enclave's Altavista project. They had sought a refund after the developer failed to hand over possession and argued that their rights under Section 18 of...