How the Insolvency and Bankruptcy Code reshaped the position of homebuyers in distressed real estate projects — and what it means in practice. The Insolvency and Bankruptcy Code, 2016 (IBC) recognises homebuyers as financial creditors in real estate insolvency proceedings in India. This means homebuyers can participate in the Corporate Insolvency Resolution Process (CIRP), vote through an authorised representative in the Committee of Creditors (CoC), and...
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The Insolvency and Bankruptcy Code, 2016 (“IBC”) has fundamentally reshaped the way financial distress and debt defaults are addressed in India. For creditors, it provides an effective framework for seeking resolution of unpaid debts. For businesses, however, the receipt of an insolvency petition can be an alarming development with potentially significant legal and commercial consequences....
The moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 is one of the most significant protections available during the Corporate Insolvency Resolution Process (CIRP). Once an insolvency application is admitted by the National Company Law Tribunal (NCLT), a temporary legal restraint comes into force that prevents creditors and other stakeholders from initiating...