In a landmark judgment with far-reaching implications for India’s real estate sector, the Supreme Court has firmly distinguished between genuine homebuyers and “speculative investors,” ruling that the Insolvency and Bankruptcy Code (IBC) cannot be misused as a recovery tool by those seeking lucrative returns without any intention of owning a home.
A bench of Justices JB Pardiwala and R Mahadevan, while disposing of a batch of four appeals, upheld the decisions of the National Company Law Appellate Tribunal (NCLAT) that had set aside the initiation of Corporate Insolvency Resolution Process (CIRP) against two builders based on petitions filed by two allottees, Mansi Brar Fernandes and Sunita Agarwal.
Core of the…