The record
Written from the 1 report below. Nothing here is unsourced.
- The Supreme Court has ruled that the moratorium under the Insolvency and Bankruptcy Code protects only the corporate debtor company, not its promoters or directors.
- A bench of Justices Vikram Nath and Sandeep Mehta quashed a National Consumer Disputes Redressal Commission order that had stayed a homebuyers' complaint against promoters of a Bengaluru real estate firm, Mantri Technology Constellation Pvt Ltd, because of insolvency proceedings against the company.
- The court held that Section 14 of the IBC cannot be expanded beyond its statutory scope and that consumer proceedings against promoters and directors can continue.
- This matters because promoters of real estate companies have often used pending insolvency cases as a shield against homebuyers seeking possession of flats.
What to watch next
- How NCDRC and lower consumer forums apply this ruling in other homebuyer cases stayed due to insolvency proceedings.
- Whether promoters or directors seek further review or appeal of this interpretation.
- Progress of the revived proceedings against the promoters of Mantri Technology Constellation Pvt Ltd.
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Named India · Mantri Technology Constellation Pvt Ltd · Bengaluru · Chandrachur Bhattacharya · Homebuyers · National Consumer Disputes Redressal Commission · New Delhi · Sandeep Mehta · Supreme Court · Vikram Nath
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