After the recent dispute concerning Insolvency Law, which involved Jaypee Infratech and its flat buyers, there has been a debate on a possible amendment to the Insolvency and Bankruptcy Code (IBC).
The IBC as should be well known is not a sectoral law. This means that it doesnt cater to the demands and needs of any specific industry. The real estate sector, like any other sector, has its own unique business models and practices. The issue at hand involves a large number of flat buyers, who had put in their hard-earned money into real estate projects of Jaypee Infratech, which is now facing a possible liquidation through the IBC.
The regime under IBC has a priority order in terms of settlement of debt of the company with its creditors. This…
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