More relief likely for homebuyers...

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HOWEVER, SUCH EXCLUSIONS cause delays in the resolution plan and result in litigation when the“non-filing homebuyers” subsequently approach the resolution professional (RP) seeking their inclusion.

The IBBI has proposed that the IM — which captures the claims of all creditors — shall include the details of all allottees irrespective of whether such allottees have filed claims. The resolution plan shall provide for treatment of such allottees, the paper said.

Experts said that this is an “important protection” for homebuyers. “The IBBI is recognising homebuyers as an essential creditor class. This can substantially reduce litigation post-resolution, bring more fairness, and stabilise the resolution process. This is also crucial for the reason that for many homebuyers, CIRP (corporate insolvency resolution process) has been their only pathway to recover or salvage their investments. Hence, better representation can lead to more just outcomes,’ said Yogendra Aldak, executive partner at Lakshmikumaran & Sridharan Attorneys.