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Insolvency & bankruptcy code doesnt give immunity to promoters, directors: SC

Dated on: Monday 26th February 2024

The Supreme Court has ruled that promoters and directors of an insolvent firm are not entitled to the shield of protection under the Insolvency and Bankruptcy Code, and that proceedings may be brought against them. This decision is a relief to homebuyers, many of whom are left in the dark after real estate companies enter insolvency proceedings and a moratorium is imposed under the code.

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