India, Jan. 17 -- The Supreme Court on Thursday held that a society or Resident Welfare Association of homebuyers has no locus standi (legal standing) to intervene in insolvency proceedings initiated against a real estate developer, as it is neither a creditor nor an authorised representative of allottees in the real estate project. A Bench of Justices JB Pardiwala and R Mahadevan held, "A society or Resident Welfare Association, not being a creditor in its own right and not recognised as an authorised representative of allottees under the IBC, has no locus standi to intervene in proceedings arising out of a Section 7 petition."

The Court observed that homebuyers' societies or welfare associations are ordinarily constituted for the maint...