IBC amendment: Supreme Court provides partial relief to homebuyers
The NCLT will have to maintain status quo with respect to the applications already filed by homebuyers, investors against defaulting developers, said Aditya Parolia
The constitutional validity of the IBC amendment will be tested by the SC after hearing the govt and the homebuyers
Providing partial relief to homebuyers, the Supreme Court has issued a notice to the government of India on the petition filed by homebuyers against the amendment of the Insolvency and Bankruptcy Code (IBC) 2016 which introduced a minimum threshold for filing an application with the National Company Law Tribunal (NCLT) against a defaulting developer. “This basically means that the NCLT will have to maintain status quo with respect to the applications already filed by homebuyers and investors against defaulting developers," said Aditya Parolia of PSP Legal, Advocates & Solicitors.