"Home buyers can initiate corporate insolvency process." Comment.
CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · June 2022
"Home buyers can initiate corporate insolvency process." Comment.
Answer & Explanation:
The home buyer can initiate corporate insolvency process against the builders or developers as they have been included in the definition of Financial debt as per explanation to Section 5(8)(f) of Insolvency & Bankruptcy Code, 2016. As per Section 7 of the Insolvency & Bankruptcy Code, 2016, financial creditors who are allottees under a real estate project, an application for initiating corporate insolvency resolution process against the corporate debtor shall be filed jointly by not less than one hundred of such allottees under the same real estate project or not less than ten per cent. of the total number of such allottees under the same real estate project, whichever is less.
Topics: Insolvency and Bankruptcy Code (IBC)
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