Can Flat Buyers initiate insolvency proceedings against Builders under the Insolvency & Bankruptcy Code? This question assumes greater significance now because many real estate giants are facing insolvency proceedings in various Company Law Tribunals under the new I & B Code, 2016 across the country. Latest is the case of J.P. Infratech which is one of the largest real estate Developer in North India. Flat buyers are in absolute legal chaos.
The locus standi of the flat buyers for initiating Insolvency Resolution Process against the defaulting Real Estate Developer Companies is a grey area. Under Chapter II of the I & B Code, 2016, either the Financial Creditor, Operational Creditor or the Corporate Debtor can initiate Insolvency Resolu…
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