Embracing a similar test in the IBC would avert unjust denial of valid financial claims dressed only as penalties. It would further strengthen creditor participation in the committee of creditors, allowing more balanced participation in the collective settlement process.

The recent amendment to the Liquidation Regulations has introduced a measure of certainty and clarity for homebuyers.

By upholding appellants’ status as being part of a class of creditors, Supreme Court has managed to preserve the sanctity of 2018 amendment.