Homebuyers move SC against the IBC amendment introducing minimum threshold
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Group of homebuyers have filed multiple writ petition with the Supreme Court challenging the recent amendment brought in by the government in the Indian Bankruptcy Code (IBC) which has put a minimum threshold on the number of home buyers that can approach the National Company Law Tribunal (NCLT) in order to start the liquidation process against the defaulting developer.
Government brought in an amendment under IBC in mid December to introduce a minimum threshold of 100 or 10 per cent home buyers whichever is lower required to take a defaulting developer to the NCLT for starting the liquidation process. The government later came out with an ordinance to clear this amendment.
Prior to this amendment even a single financial creditor, including a homebuyer, with claims of at least Rs.1 lakh could move NCLT against the defaulting developer.
In the petition filed with the Supreme Court, homebuyers have argued that the amendment is arbitrary and discriminatory.
Government brought in an amendment under IBC in mid December to introduce a minimum threshold of 100 or 10 per cent home buyers whichever is lower required to take a defaulting developer to the NCLT for starting the liquidation process. The government later came out with an ordinance to clear this amendment.
Prior to this amendment even a single financial creditor, including a homebuyer, with claims of at least Rs.1 lakh could move NCLT against the defaulting developer.
In the petition filed with the Supreme Court, homebuyers have argued that the amendment is arbitrary and discriminatory.
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