Supreme Court: Insolvency shield is for firm, not promoters

IBC is to facilitate the resolution process and not to eclipse the statutory remediesNEW DELHI: Promoters of real estate companies use pending insolvency proceedings as a shield to protect themselves in court cases filed by homebuyers for not giving possession of flats, but Supreme Court on Monday clarified that a moratorium against the corporate debtor does not give protection to promoters and directors, and proceedings can continue against them.A bench of Justices Vikram Nath and Sandeep Mehta quashed an order passed by the National Consumer Disputes Redressal Commission by which a consumer complaint against promoters and directors of a Bengaluru-based real estate company was stayed in view of insolvency proceedings against the company. The court allowed the plea of homebuyers who challe