When a real stat project is sent to the National Company Law Tribunal (NCLT) with an Interim Resolution Professional (IRP), numerous major issues for homeowners arise. The Insolvency and Bankruptcy Code (IBC) is extremely important in this procedure.
When an application for initiation of corporate insolvency resolution is admitted against a real estate company/project (Corporate Debtor) with an appointed IRP, a moratorium is declared in terms of Section 14 of the Insolvency and Bankruptcy Code, 2016 (Code), pursuant to which there is a moratorium declared against, among other things, any suits and proceedings against the Corporate Debtor, any action to recovery or enforce security interest against the real estate company/project and tran…
Read the full article at: https://www.businesstoday.in/personal-finance/top-story/story/what-happens-to-homebuyers-when-nclt-appoints-an-irp-for-a-real-estate-project-403140-2023-10-25