As of December 2024, insolvencies in the real estate sector accounted for approximately 22% of admitted cases under the Insolvency and Bankruptcy Code, 2016 (“IBC”), making it second only to the manufacturing sector that accounted for 37% of admitted cases.[1] The high volume of insolvencies in the real estate sector, the imperative to protect homebuyer interests and specific challenges faced by this sector have resulted in several amendments focused specifically on the insolvency process for real

Introduction

On November 07, 2024, the Supreme Court of India (“Court”) in its judgment in State Bank of India & Ors. vs. The Consortium of Mr. Murari Lal Jalan and Mr. Florian Fritsch & Anr.,^[1] directed the liquidation of Jet Airways (India) Limited (“Jet”), bringing an end to the five-year long saga of efforts to revive the beleaguered airline.

Ever since the pandemic induced stress began, there has been talk of the Government introducing pre-packaged insolvency resolution processes (“pre-packs”) into the Insolvency and Bankruptcy Code, 2016 (“IBC”).  Prevalent in other jurisdictions either through statutory provisions or market driven mechanisms, pre-packs aim to provide a more debtor-friendly, cost-effective and faster resolution process in situations where there may already be a broad consensus between debtor and creditors for a resolution.