Home buyers in insolvency cases get govt's backing

The government has decided to back homebuyers caught in insolvency cases and told the National Company Law Tribunal (NCLT) that the majority vote of homebuyers cast in favour of a resolution should be treated as “the voting preference of whole sub-class in Committee of Creditors (CoC)”. In its affidavit before the tribunal, the ministry of corporate affairs (MCA) has said, “…considering the recommendation of Insolvency Law Committee (ILC) and larger public interest for actualising of the preamble of the Insolvency and Bankruptcy Code (IBC), viz, an outcome-based approach, which would facilitate resolution of JaypeeInfratech Limited (JIL) over liquidation, may be adopted.” It went on to say that homebuyers should be treated as a sub-class within the ambit of the financial creditor.