Supreme Court Rules Insolvency Resolution for Real Estate Must Be Project-Specific

The Supreme Court has ruled that insolvency resolution for real estate companies should be project-specific, not entity-wide, to protect homebuyers and ensure the timely completion of projects.

The court emphasised that merging all projects under a single resolution process harms individual homebuyers and delays delivery. The court prioritises project-wise resolution to maximise recovery and minimise disruption.

The Court also clarified that the 2019 IBC Amendment Ordinance applies to pending cases, stating that “an act of the Court shall prejudice no one,” even if orders were reserved before the amendment’s promulgation.

[Mansi Brar Fernandes v Shubha Sharma