Residents Welfare Association Or Homebuyers’ Society Can’t Intervene In Insolvency Petition Against Builder : Supreme Court

The Supreme Court on Thursday (January 15) held that Resident Welfare Associations (RWAs) representing homebuyers cannot intervene in the Corporate Insolvency Resolution Process unless the RWA itself has disbursed funds or is directly a party to the financial transaction, as only then can it claim the status of a financial creditor. “A society or Resident…

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Homebuyers’ society, RWAs can’t intervene in insolvency proceedings against developer: Supreme Court

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…