Recently, the Supreme Court, in an order which could bring relief to homebuyers whose real estate company is facing insolvency proceedings, has ruled that the Noida Authority would be treated as an operational creditor, and not as a financial creditor, unlike homebuyers in the Insolvency and Bankruptcy Code (IBC) proceedings.
Against this backdrop, Dhrupad Vaghani, Associate Partner, Economic Laws Practice (ELP) has been quoted by Outlook Publishing (India) Pvt. Ltd. in their article titled ‘How Are Operational Creditors Different from Financial Creditors’. He commented on the category in which Homebuyers fall. He said that in light of the Supreme Court judgment in the case of Chitra Sharma v Union of India, homebuyers are classified as financial creditors, and accordingly, the amending act of 2018 made amendments to the definition of financial debt.
Read the comment and detailed article here: https://bit.ly/3t0y03M