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  Business   In Other News  09 Aug 2019  SC upholds IBC amendments, status of homebuyers as financial creditors

SC upholds IBC amendments, status of homebuyers as financial creditors

PTI
Published : Aug 9, 2019, 12:09 pm IST
Updated : Aug 9, 2019, 3:30 pm IST

The bench said only genuine homebuyers can invoke insolvency proceedings against the builder.

A bench headed by Justice R F Nariman, which disposed of a batch of over 180 petitions filed by various builders. (Photo: File)
 A bench headed by Justice R F Nariman, which disposed of a batch of over 180 petitions filed by various builders. (Photo: File)

New Delhi: The Supreme Court on Friday 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 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.

Tags: insolvency and bankruptcy code, ibc, rera act, real estate
Location: India, Delhi, New Delhi