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ARTICLE · 16 JULY 2025

Redefining The Scope Of Differential Treatment Between Same Class Of Creditors

AZB & Partners
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The Insolvency and Bankruptcy Code, 2016 ("IBC") was introduced as a comprehensive framework, aiming to facilitate the reorganization and insolvency resolution of corporate entities in a time-bound manner...

IndiaInsolvency/Bankruptcy/Re-Structuring
Hardeep Sachdeva
Hardeep Sachdeva
Ravi Bhasin
Ravi Bhasin
Isha Singh
Isha Singh
Damini Sinha
Damini Sinha
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Our article has been published in the ET Legal World at: https://legal.economictimes.indiatimes.com//news/opinions/exploring-differential-treatment-of-homebuyers-in-insolvency-processes/121871547

The Insolvency and Bankruptcy Code, 2016 ("IBC") was introduced as a comprehensive framework, aiming to facilitate the reorganization and insolvency resolution of corporate entities in a time-bound manner, with the primary goals of maximizing the value of assets, promoting entrepreneurship, and enhancing credit availability. In addition to the above, one of the key objectives of the IBC is also to balance the interests of all stakeholders, including different classes of creditors. In real estate insolvencies, allottees of units/ apartments/ areas/ spaces constitute a significant stakeholder group as financial creditors. A unique situation is encountered during the corporate insolvency resolution process ("CIRP") involving real estate companies/ projects owing to the

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