Interests of Homebuyers in Insolvency: Pre- and post-Ordinance

[Pulkit Khare is a 4th year B.A., LL.B. (Hons.) student at The National University of Advanced Legal Studies, Kochi] Homebuyers knocked on the doors of the Supreme Court under Article 32 of the Constitution on grounds that the corporate insolvency resolution process (CIRP) ignored the interests of vital stakeholders in building projects floated by Jaypee Infratech Limited (JIL) under the Insolvency and Bankruptcy Code, 2016 (the Code) as it stood prior to the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2018 (the Ordinance).[1] In Chitra Sharma v. Union of India (decided on 9 August 2018), the three questions before the Supreme Court in the pre-Ordinance stage, in light of default by JIL and the need for protection of interests of homebuyers, were: to set aside the order of Moratorium under Section 14 of the code made by the National Company Law Tribunal (NCLT), Allahabad and a direction to notify exclusion of consumers under Section 14(1)(a) in the larger public…

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