New Delhi: The Supreme Court on Thursday held that homebuyers’ societies or resident welfare associations (RWAs) ordinarily constituted for maintenance and management of common facilities in a housing project cannot intervene in the insolvency proceedings of the developer company.
The judgment was delivered by a bench comprising justices JB Pardiwala and R Mahadevan. The bench upheld the insolvency proceedings related to Takshashila Heights India Private Ltd under the Insolvency and Bankruptcy Code of 2016.
The bench said that a society is a distinct juristic entity separate from its members and unless it has itself advanced funds, executed allotment agreements, or received allotments, it cannot claim financial creditor status. The bench…