In Brief
This case challenged the constitutional validity of the 2018 amendments to the Insolvency and Bankruptcy Code that treat real estate allottees (home buyers) as financial creditors, enabling them to trigger insolvency proceedings against developers. The Supreme Court upheld the amendments, holding that allottees were always implicitly covered by the original residuary provision Section 5(8)(f) as they finance projects through advance payments. The Court found no violation of Article 14 (equality), Article 19(1)(g) (freedom of trade), or Article 300-A (property rights). The Court reasoned that the classification is rational with intelligible differentia, the amendments serve the Code's rehabilitative objectives, and concurrent remedies exist under RERA and consumer law. The legislature's economic experimentation was accorded appropriate deference.
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