In a significant judgment, the Supreme Court has held that insolvency proceedings involving real estate companies should generally be confined to specific projects rather than the entire corporate entity, unless there are compelling reasons to broaden the scope. The ruling aims to protect the interests of genuine homebuyers while maintaining clarity in insolvency processes under the Insolvency and Bankruptcy Code (IBC).
The verdict came in response to appeals concerning two real estate firms, Gayatri Infra Planner Pvt. Ltd. and Antriksh Infratech Pvt. Ltd. In these cases, investors had entered into agreements that included buy-back and refund clauses, and later sought to initiate Corporate…