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SC asks for response to homebuyer’s plea
Why in news?
- SC recently asked the government to respond to a petition challenging the newly promulgated Insolvency and Bankruptcy Code (Amendment) Ordinance of 2019, which retrospectively prohibits individual homebuyers from initiating insolvency proceedings against builders.
More in news
- Notice to Govt.:
(1) SC Bench issued notice to the government and ordered status quo in the case of insolvency applications already filed by homebuyers in the National Company Law Tribunal (NCLT).
- Section 3 of the ordinance:
(1) It prescribes a minimum threshold for initiating insolvency proceedings before the NCLT.
(2) It required that NCLT need to take cognisance only if it receives an application for insolvency process jointly filed by 10% or 100 in number of the total allottees/homebuyers, whichever is less, from the same project.
Sources
The Hindu