Supreme Court Slams Speculative Investors: IBC Not a Shortcut to Profits

The Supreme Court, in a judgment authored by Justice R. Mahadevan and delivered by a bench also comprising Justice J.B. Pardiwala, ruled that speculative investors cannot misuse the Insolvency and Bankruptcy Code (IBC) for quick financial gains.

The Court emphasized that the IBC is meant to revive distressed companies and protect genuine homebuyers, not to serve as a debt recovery tool.

The ruling stemmed from a case where an investor sought insolvency proceedings based on a financial investment disguised as a buyer agreement.