SC upholds IBC amendments mandating minimum threshold for insolvency process against developers
PrintListen to this Article
The homebuyers had not taken kindly to these amendments on the ground that in every other category even a single creditor could by itself move the insolvency court.
They had argued that this was discriminatory and placed homebuyers at a disadvantage as they would have to herd a minimum number before they could act against any errant builder. It was also time consuming, they had claimed in court.
Before these amendments were made, even a single buyer with claims of at least ₹1 lakh could move the National Company Law Tribunal (NCLT) seeking insolvency proceedings against any builder. The amendments had been brought in after a top court ruling, which placed homebuyers on par a with other financial creditors.
Some of the petitioners were money lenders, who had to also fulfil the same requirements to recover their monies lent to the builders for their real estate projects.
Defending the law, the government had said that it reduces multiplicity of cases in the NCLT and ensures quick disposal.
A three-judge bench led by Justice R F Nariman upheld the 2019 amendments on Tuesday. The bench rejected the argument that the law was created by way of pandering to the real estate lobby and succumbing to their pressure or by way of placating their vested interests.
“Such an argument is nothing but a thinly disguised attempt at questioning the law of the legislature based on malice. A law is made by a body of elected representatives of the people. When they act in their legislative capacity, what is being rolled out is ordinary law. Should the same legislators sit to amend the Constitution, they would be acting as members of the Constituent Assembly,” the bench said.
Category : Income Tax | Comments : 0 | Hits : 870
If you earn income other than salary or have multiple income streams, the advance tax deadline falling today—Monday, December 15, 2025—should not be overlooked. Failure to pay advance tax on time, or paying less than the required amount, may attract interest charges that continue to accumulate. As the Income Tax Act operates on a “pay as you earn” basis, being aware of advance tax provisions and the financial impact of delays can help you avoid unnecessary costs and last-...
If you earn income other than salary or have multiple income streams, the advance tax deadline falling today—Monday, December 15, 2025—should not be overlooked. Failure to pay advance tax on time, or paying less than the required amount, may attract interest charges that continue to accumulate. As the Income Tax Act operates on a “pay as you earn” basis, being aware of advance tax provisions and the financial impact of delays can help you avoid unnecessary costs and last-...
As many as 5,44,205 appeals were pending resolution with the Income Tax (IT) Department at commissioner (appeals) level as of January 31 this year, and 63,246 at various Income Tax Appellate Tribunals (ITATs), High Courts, and the Supreme Court, FE has learnt. To be precise, the cases pending in ITATs were 20,266 High Courts, 37,436; and Supreme Court 5,544. The large pendency is even as the Central Board of Direct Taxes (CBDT) has laid emphasis on disposing of income tax appeals in its 10...
The Central Board of Direct Taxes (CBDT) has facilitated taxpayers to file their Income Tax Returns (ITRs) for the Assessment Year 2024-25 (relevant to Financial Year 2023-24) from 1st April, 2024 onwards. The ITR functionalities i.e. ITR-1, ITR-2 and ITR-4, commonly used by taxpayers are available on the e-filing portal from 1st April, 2024 onwards for taxpayers to file their Returns. Companies will also be able to file their ITRs through ITR-6 from April 1 onwards. As ...
It has come to notice that misleading information related to new tax regime is being spread on some social media platforms. It is therefore clarified that the new regime under section 115BAC(1A) was introduced in the Finance Act 2023 which was as under as compared to the existing old regime (without exemptions): New Regime 115BAC (1A) introduced for FY 2023-24 Existing old Regime 0-3 lacs 0% 0-2.5 lacs 0% ...
Comments