The status of homebuyers as a class of financial creditors and their right to initiate the Corporate Insolvency Resolution Process (CIRP) against the builder/developer under the Insolvency and Bankruptcy Code (IBC or Code) had traversed a very long journey which witnessed various legislative amendments and Supreme Court’s decision (Chitra Sharma versus Union of India & Pioneer Infrastructure versus Union of India) on the constitutionality of those amendments.
This journey of homebuyers perhaps reached a destination with the latest judgment of Manish Kumar versus Union of India wherein the three-judge bench of the Supreme Court upheld that amendment to Section 7(1) of the code which prescribed a certain threshold for allottees.
Backgroun…
Read the full article at: https://www.livelaw.in/columns/supreme-court-insolvency-and-bankruptcy-cirp-homebuyers-builders-168895
