SC: RWAs can't intervene in developer firm's insolvency

APEX COURT SAYS IBC IS SELF-CONTAINED CODE

- PRESS TRUST OF INDIA

THE SUPREME COURT on Thursday ruled that homebuyers’ societies or Resident Welfare Associations (RWAs) ordinarily constituted for maintenance and management of common facilities in a housing project cannot intervene in the insolvency proceedings of the developer company.

A bench of justices JB Pardiwala and R Mahdevan, which upheld the insolvency proceedings related to Takshashila Heights India Private Ltd under the Insolvency and Bankruptcy Code (IBC) of 2016, said if creditors elect to invoke the provisions of the code, they must do so with a genuine willingness to pursue revival of the corporate debtor.