Supreme Court Rejects Builder's Plea to Limit Insolvency Process to Single Project

The Supreme Court dismissed an appeal by Harpal Singh Chawla, the suspended director of Spaze Towers Pvt. Ltd., seeking to limit the Corporate Insolvency Resolution Process (CIRP) to the Spaze Arrow project. 

The Court upheld the NCLAT ruling, stating that creditors from multiple projects should not be excluded. It emphasized the rights of financial creditors, including real estate allottees, under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, which allows them to file claims as part of the CIRP, regardless of the project.

The financial creditors, including real estate allottees from multiple projects, are entitled to file claims under the Insolvency and Bankruptcy Code, and the CIRP will continue to cover all claims without exclusion.