There have been a couple of noteworthy pronouncements by the Supreme Court relating to the Insolvency and Bankruptcy Code 2016. These go to strengthen the Code, which an important measure, meant to prevent insolvency by reviving ailing businesses. The Code however, is not a recovery tool for creditors but a resolution mechanism to breathe life into stressed assets of the corporate debtor.
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Financially bleeding allotees in the real estate sector got respite when the three-judge bench of the Supreme Court in 2019 ruled that the home buyers rights would remain at par with the lenders. They upheld their ability to take up bankruptcy proceedings against the real estate developers. Home buyers thereafter got classified as financ…
Read the full article at: https://www.thehindubusinessline.com/business-laws/sc-has-made-noteworthy-pronouncements-on-the-insolvency-code/article33775414.ece
