Insolvency resolution is about the allocation of losses among different stakeholders in a situation where there isnt enough left in the pot for everyone. So far, the stakeholders at the centre of the public discourse under the new and fast evolving Insolvency and Bankruptcy Code (IBC) have been banks, trade creditors, promoters, workmen, employees and minority shareholders. The Supreme Courts order in the Chitra Sharma v. Union of India case earlier this month has brought attention to the rights of a new group of stakeholders consumers who have made advances on goods or services that are yet to be delivered.
In this case, the petitioners, who are homebuyers, submitted that insolvency proceedings against the real estate developer, Jaypee …
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