Reverse CIRP – An appraisal of the NCLAT’s Insolvency Voyage
Introduction
“The first requirement of a sound body of law is, that it should correspond with the actual feelings and demands of the community, whether right or wrong.” – Oliver Wendell Holmes Jr.
The concept of ‘Reverse Insolvency’ was alien to the Insolvency and Bankruptcy Code, 2016. It is a well acknowledged fact that the Code has undergone several amendments since its inception. One of the most prominent being, inclusion of homebuyers as financial creditors. But the corporate insolvency resolution process of Real Estate Company was not that uncomplicated. The process posed a major hurdle in terms of the rigorousness that could prejudice the rights of homebuyers.