Home buyers whose petitions were pending before the NCLT for trigger of IBC against defaulting realty developers have cause for cheer.
This is because the Supreme Court on Monday ordered status quo on pending cases before the NCLT in the wake of several home buyers approaching the apex court with writ petitions challenging the constitutional validity of the insolvency ordinance promulgated in December 2019.
This apex court direction would ensure that no pending cases would be dismissed in the light of Ordinance stipulation, say legal experts.
The Insolvency ordinance of December 27 had stipulated that at least 100 home buyers or 10 percent of total allottees of a project, whichever is lower should come together to file a petition for triggering IBC.
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January 14, 2020