An allottee who has lost trust in Management is entitled to seek resolution through CIRP : NCLAT

The National Company Law Appellate Tribunal (NCLAT) has ruled that an allottee who has lost trust in the management is entitled to seek resolution through the Corporate Insolvency Resolution Process (CIRP). This decision broadens the scope for aggrieved allottees to initiate insolvency proceedings, particularly in real estate projects where developers fail to deliver. The NCLAT recognized that a loss of trust can constitute a legitimate ground for seeking resolution, even if there isn't a direct monetary default in the traditional sense. This ruling empowers allottees and provides a crucial avenue for recourse when project management is deemed untrustworthy or incompetent.