CHITRA SHARMA vs UNION OF INDIA

The Supreme Court addressed the rights of home buyers under the Insolvency and Bankruptcy Code, 2016 (IBC), specifically Sections 6, 7, 10, 14, and 53, ruling that these provisions, which prioritize financial and operational creditors, are ultra vires as they neglect the interests of home buyers. The Court held that home buyers should not be treated as mere stakeholders without rights, and directed the Union of India to ensure their protection under the Consumer Protection Act, 1986 and the Real Estate (Regulation and Development) Act, 2016. The Court emphasized that the moratorium under Section 14(1)(a) should not apply to home buyers, thereby affirming their right to seek redressal.