IBC Ordinance does not apply to commercial real estate buyers, says Shroff

He says, objective of introducing homebuyers as financial creditors is to provide them a seat in committee of creditors so that their interests can be taken care of

An important member of a panel, Shardul Shroff and his panel’s recommendations have led to promulgation of an ordinance on insolvency law. The executive chairman of Shardul Amarchand Mangaldas, speaks about various aspects of the ordinance in conversation with Veena Mani. Edited excerpts:

How will homebuyers be represented in the Credit of Committee?  Does the ordinance also apply to the commercial real estate buyers?  

The ordinance has given homebuyers the status of financial creditors.  If there is a default, homebuyers have to first place a demand like a financial creditor, and then move the National Company Law Tribunal (NCLT) for corporate resolution