While granting relief to homebuyers stuck in a real estate dispute, the Supreme Court has held that the moratorium under the Insolvency and Bankruptcy Code, 2016 (IBC) operates against the corporate debtor alone and no other category, whether it be any subsidiary company, manager/ director, or personal guarantor, can be added to it unless specifically provided.
The Apex Court further held that there was no bar on deciding the consumer complaint against the Promoters, Directors when there was no moratorium operating in their favour.
The Apex Court was considering the civil appeals filed against the judgment of the National Consumer Disputes Redressal Commission whereby the NCDRC rejected the applications seeking…