An owner of an under-construction property plans to sell his unit to a prospective buyer. The process involves a NoC from the builder. There is an old NCDRC case filed against the builder by a group of owners, including the present owner, when they had filed the case long back in 2016-17 against delayed construction /handover. Later, in 2023, NCLT decided to hand over the project to a new entity following a long process. The 5 questions are as follows: 1 Will there be any issue in selling this unit at this point, with the above details? 2 More specifically, will the builder issue a NoC for selling? 2 With NCLT coming into the picture, do all NCDRC cases come to an end automatically? 4. To sell, if there appears to be an issue, what is the remedy to clear the matter for the smooth sale of the unit? 5 Please give a concrete solution so that the property sale is done.
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1) there is no hindrance in selling the flat
2) builder NOC is not necessary
3) once registered sale deed is executed tithe passes on to the buyer
4) if there is no registered sale deed builder NOC would be required and builder will demand his pound of flesh to give NOC
5) pay the builder his charges for obtaining NOC
Yes, there could be issues in selling due to the old NCDRC case and ongoing project restructuring under NCLT.
Builder may deny NoC, especially if litigation is pending or dues are unsettled.
No, NCDRC cases do not end automatically just because NCLT took over. They may continue or get transferred, depending on court directions.
Remedy:
Settle any pending dues or legal claims.
Get a written update from NCLT-appointed resolution professional.
Apply to NCLT/NCDRC (as applicable) to permit transfer/sale, stating buyer is aware.
Concrete solution:
Consult a real estate lawyer.
Draft a tripartite agreement with buyer and new entity (if applicable).
Ensure legal clearance and builder's NoC via formal application or NCLT route.
✅ Legal clearance + Builder’s NoC = Smooth Sale.
Hi Shubham, seen your response. Thanks for covering all aspects. Can the owner file an application to withdraw from said court /NCDRC matter? would it be enough? The is JP wishtown matter which NCL awarded to M/s Suraksha. 2 Do you handle such matters for a logical end for the NoC issue? wld like to call you for guidance if fine
You can seek phone consultation with any lawyer in this website
owner is at liberty to withdraw from NCDRC matter
1) An under-construction unit can generally be sold even if there's a past NCDRC case, but some issues may arise depending on whether the case is still pending or disposed of.
2) Since the project has been taken over by a new entity under the NCLT resolution plan, the authority to issue a NoC now lies with the new promoter or resolution professional, not the original builder. A NoC may be denied if the previous case is active or dues are pending.
3) Importantly, NCDRC cases do not automatically close due to NCLT proceedings; they may be stayed but remain technically alive unless withdrawn or decided.
4) The seller should confirm the NCDRC case status and ideally withdraw it or obtain an order of disposal. They should then approach the new builder entity with all required documents, pay any pending dues, and request a NoC. If the NoC is delayed or refused, a formal representation or legal notice may be necessary. The buyer should be fully informed of the case history, and due diligence must be documented. A tripartite agreement may also be required to secure all parties’ interests.
1. If the seller has a registered sale deed on his name then he can very well sell the property provided the pending litigations are disposed, however if the seller is not having proper title to the property then you may have to wait until the disputes have been resolved fully.
2. The dispute between the builder and the seller has to be disposed unless the builder may not give NOC because the seller has not acquired the property by a registered sale deed, hence he has to depend on the builder to complete this process.
3. No, the case before NCDRC is different to that of the case before NCLT, they don't get disposed automatically.
4. If you are interested to purchase the under construction property then you may first of all ascertain the details and obtain a legal opinion before making any payment including the advance amount.
5. You may have to analyse the facts and obtain a proper legal opinion and proceed only if recommended.
You have not confirmed tht if the seller has a registered sale deed on his name or not.
Assuming he has a registered sale deed, then what about the completion of the construction of the flat?
Did the seller take over the incompletely constructed flat and got it registered?
You have stated in your previous post that it is an under construction property hence the buyer cannot become the owner until the flat construction is completed.
This indicates that the seller do not have clear and marketable title to sell the property there fore he has to depend on the builder to enter into a tripartite agreement along with the builder.
The seller has to withdraw the case he has filed against the builder if he requires the builder to cooperate with him to sell this property.
If you want to discuss with the chosen lawyer of this forum you can book a phone consultation and discuss the subject matter at length before taking any decision.
Yes it can be withdrawn from court. Yes you can call me through kaanoon for the detailed information and consultation in the said matter
1. If the property already registered in the name of buyer then no NOC is required from the builder
- However, if there is only an agreement with the builder then NOC is required for selling the property , due to requirement of an agreement with the intending buyer
2. Yes, can issue after charging a nominal amount of transfer
3. No,
4. Reply No.1
5. Approach the builder and request him to make changes in the Builder-Buyer Agreement and transfer the ownership rights in the name of purchaser.
