Case Law Analysis
|National Company Law Appellate Tribunal
CIRP Must Be Project-Specific | Homebuyer Claims Under IBC Limited to Defaulting Real Estate Project Only: NCLAT
The NCLAT has ruled that the Corporate Insolvency Resolution Process under the IBC cannot be invoked against a real estate developer’s entire portfolio - it must be confined strictly to the project where default occurred. This protects other solvent projects and their homebuyers from being dragged into insolvency, establishing a critical precedent for sector-specific relief and equitable treatment of consumer-creditors in real estate insolvencies.