IS THERE ANY WAY FOR HOMEBUYERS TO GET WHAT THEY ARE ENTITLED TO IN THE LIGHT OF IBC?

Abstract

One of the biggest achievements for any middle class family generally is to have their home and to achieve that a huge amount of money is paid or spend by the Homebuyers to the developers or builders. A very common problem has emerged in recent years where the possession is not given to the homebuyers at time and to get the possession they have to run from pillar to post to get what they are worthy of. To devise a solution to this problem, the Parliament apart from enacting RERA also amended IBC though IBC Second amendment by granting homebuyers the status of Financial Creditors and the Hon’ble Apex Court also held this amendment constitutional. The intention of the legislature was to curb the problem of the Homebuyers but the collateral damage which is being done to the basic idea of the Code was not foreseen by the Parliament. This piece of work is an attempt to holistically examine the law related to homebuyers and whether they are secured financial creditors and what are the problems lying ahead in implementing this scheme. This work is expected to enhance the knowledge of the readers of laws related to Insolvency and the remedies available to the homebuyers under IBC, and author is hopeful that it will contribute towards further research.    

Keywords:- Insolvency, Homebuyers, Possession, Amendment, Creditors