No default under IBC by Real-Estate Developer if possession is delayed due to reasons beyond its control, NCLAT

No default under IBC by Real-Estate Developer if possession is delayed due to reasons beyond its control, NCLAT

The NCLAT has also stated that penalty can be imposed on allottees if they are found to have initiated fraudulent and malicious insolvency proceedings against a developer.

The NCLAT has held that a real-estate developer cannot be said to have committed a ‘default’ under the Insolvency & Bankruptcy Code, 2016 when the possession of an apartment/flat/premise is delayed due to reasons beyond its control.

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