SC upholds amendments to Insolvency Code

August 09, 2019 11:25 am | Updated 11:27 am IST - New Delhi

NEW DELHI, 09/04/2013: Supreme Court of India in New Delhi on April 10,  2013. 
Photo: S. Subramanium

NEW DELHI, 09/04/2013: Supreme Court of India in New Delhi on April 10, 2013. Photo: S. Subramanium

The Supreme Court on August 9 upheld amendments to the Insolvency and Bankruptcy Code (IBC), giving status of financial creditors to homebuyers.

A bench headed by Justice R.F. Nariman, which disposed of a batch of over 180 petitions filed by various builders, said the Real Estate Regulatory Authority (RERA) act which regulates the real estate sector should be read harmoniously with the amendments made in the IBC and in case of conflict the code will prevail.

The bench said only genuine homebuyers can invoke insolvency proceedings against the builder and asked the Centre to file an affidavit taking the corrective measures.

The judgement came on a batch of pleas filed by builders who have argued that remedies to homebuyers were available under the RERA Act and the amendments to IBC only enables duplication.

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