Insolvency to be limited to real estate project concerned
In a relief to realty players, the National Company Law Appellate Tribunal (NCLAT) has held that any insolvency process initiated by a flat buyer or financial institution would be limited to the project concerned only and not impact other projects of developers. A NCLAT bench headed by Chairman Justice S J Mukhopadhaya said that the entire insolvency process initiated over the plea of either a flat buyer or bank or any other financial institution would be limited to the project only. Besides, the appellate tribunal has also suggested that there should also be a reverse corporate insolvency process in such cases.
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