The Insolvency and Bankruptcy Code (IBC), 2016 no doubt is a path-breaking initiative in the whole reform process.
Not surprisingly, it has triggered huge debate and one of the key grey areas that had emerged in a recent cases pertained to rights of the customers in an insolvency process.
The Supreme Court had reportedly indicated that it would settle the grey areas in the code to see what role homebuyers could play in liquidation proceedings, while hearing arguments in the Jaypee Infratech case.
When the IBC 2016 was introduced, it classified company creditors into two categories financial creditors (banks and financial intuitions) and operational creditors (suppliers and vendors). It did not address the position of other creditors o…
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