Authorised Representatives And Homebuyers Under The Insolvency And Bankruptcy Code, 2016: A Doctrinal Critique

Full Text Link

Naman Dudhoria, Jindal Global Law School, O.P. Jindal Global University

ABSTRACT

The Insolvency and Bankruptcy Code, 2016 (IBC) changed India’s insolvency system by introducing a process driven by creditors. A major reform was recognizing homebuyers as financial creditors through the Insolvency and Bankruptcy Code (Amendment) Act, 2018. As homebuyers are numerous and spread out, the Code added Authorised Representatives (ARs) to help them participate collectively in the Committee of Creditors (CoC). Although the AR framework aimed to balance efficiency with inclusion, it faces challenges in terms of transparency, accountability and true representation. This paper analyses the laws and regulations related to ARs alongside important court developments. This paper argues that the current system focuses too much on procedural efficiency, which limits meaningful participation from homebuyers and risks reducing their representation to a mere formality. The paper suggests specific regulatory and procedural changes to improve the AR mechanism without jeopardizing the IBC’s time-sensitive goals.

Keywords: Insolvency and Bankruptcy Code, Homebuyers, Authorised Representative, Committee of Creditors, Insolvency Law.

AUTHORISED REPRESENTATIVES AND HOMEBUYERS UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016- .

Download • 267KB