Interest Of Homebuyers Paramount In Insolvency Process Of Real Estate Company: Allahabad High Court

The Allahabad High Court held that the interests of homebuyers must be prioritised during the insolvency resolution of real estate companies. It directed that insolvency proceedings should focus on completing projects and delivering possession rather than liquidation. The Court emphasised harmonising the Insolvency and Bankruptcy Code with RERA to protect allottees’ rights. Recognising homebuyers as a distinct class of financial creditors, the Court stressed that resolution professionals and NCLTs must act to minimise hardship to buyers. The ruling reinforces consumer protection within the IBC framework and promotes fair, equitable resolution in real estate insolvency cases.