The petition was preferred by 4 Petitioners, while the total number of allottees qua the Corporate Debtor (CD) is 488. The petitioners sought to initiate Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The maintainability of the petition was questioned based on the minimum number of allottees required to file such a petition.
Four petitioners filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Parsvnath Landmark Developers Private Limited. The total number of allottees related to the Corporate Debtor (CD) is 488. The petitioners argued that they should be considered financial creditors because they have a decree in their favor passed by the Real Estate Regulatory Authority (RERA). The petitioners relied on the Supreme Court's judgement in Kotak Mahindra Bank Ltd. Vs. A. Balakrishnan & Anr. The Corporate Debtor's counsel argued that the petitioners, being homebuyers, cannot change their status to financial creditors after RERA decrees, relying on the Supreme Court's judgement in Vishal Chelani & Ors. Vs. Debashis Nanda. Section 7(1) of the IBC
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The petition was preferred by 4 Petitioners, while the total number of allottees qua the Corporate Debtor (CD) is 488. The petitioners sought to initiate Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016. The maintainability of the petition was questioned based on the minimum number of allottees required to file such a petition.
Four petitioners filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Parsvnath Landmark Developers Private Limited. The total number of allottees related to the Corporate Debtor (CD) is 488. The petitioners argued that they should be considered financial creditors because they have a decree in their favor passed by the Real Estate Regulatory Authority (RERA). The petitioners relied on the Supreme Court's judgement in Kotak Mahindra Bank Ltd. Vs. A. Balakrishnan & Anr. The Corporate Debtor's counsel argued that the petitioners, being homebuyers, cannot change their status to financial creditors after RERA decrees, relying on the Supreme Court's judgement in Vishal Chelani & Ors. Vs. Debashis Nanda. Section 7(1) of the IBC
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