In Brief
A suspended director of a stalled housing project sought to complete the project instead of continuing insolvency proceedings. The project was 70% complete with over 450 home-buyers awaiting possession. The director submitted a settlement plan endorsed by most home-buyers in a stakeholder meeting, with commitments to complete within 6-15 months, freeze costs, and honour original agreements. Only 7 home-buyers opposed. The Supreme Court held that where a promoter demonstrates genuine ability and commitment to complete a housing project through bona fide settlement, and the overwhelming majority of home-buyers favour completion over CIRP, the promoter should be permitted to proceed. The Court set aside the appellate tribunal's rejection and allowed the director to complete the project under Court supervision."
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