Flats Image for representative purposes
The Supreme Court on Thursday held that a society or Resident Welfare Association of homebuyers has no locus standi (legal standing) to intervene in insolvency proceedings initiated against a real estate developer as it is neither a creditor nor an authorised representative of allottees in the real estate project [Elegana Co-op Housing and Commercial Society Vs Edleweiss Asset Reconstruction Company Limited].
A Bench of Justices JB Pardiwala and R Mahadevan held,
“A society or Resident Welfare Association, not being a creditor in its own right and not recognised as an authorised representative of allottees under the IBC, has no locus standi to intervene in proceedings arising out a Section 7…