In Brief
The Supreme Court upheld a National Company Law Appellate Tribunal decision admitting a real estate developer (Takshashila Heights) into corporate insolvency proceedings after it defaulted on a ₹70-crore loan. The Court held that once financial debt and default are conclusively established under the Insolvency and Bankruptcy Code, admission is mandatory—even if the project is viable or substantial. The Court rejected arguments that the creditor misused insolvency as a recovery tool. It also dismissed a homebuyers' society's intervention appeal, holding that while individual homebuyers are financial creditors, the society itself lacks locus standi absent statutory recognition. The judgment emphasizes that insolvency proceeds on rigorous legal thresholds, not equitable discretion.
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