The Supreme Court of India has upheld the initiation of the Corporate Insolvency Resolution Process (CIRP) against a real estate developer, ruling that the admission of a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) is mandatory once the existence of a financial debt and default is established. The Court further held that a Co-operative Housing Society, which is neither a financial creditor in its own right nor an authorized representative under the Code, lacks the locus standi to intervene in such proceedings.
A Division Bench comprising Justice J.B. Pardiwala and Justice R. Mahadevan dismissed the appeals filed by Elegna Co-Op. Housing and Commercial Society Ltd. and the corporate debtor,…