Quashing the hopes of the homebuyers, the Apex Court on Tuesday upheld the validity of the amendments made to the Insolvency and Bankruptcy Code (IBC) in 2020 and dismissed the writ petitions filed last year 2020.
The Section 7(1) of the IBC was amended by the government last year and a minimum threshold limit of 100 nos. or 10% of homebuyers of the same real estate project, whichever less was introduced to initiate proceedings against a defaulting real estate developer under IBC. Earlier, before the amendment, even a single homebuyer could approach the National Company Law Tribunal (NCLT) against the defaulting developer under IBC proceedings.
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