India, Jan. 18 -- 'Tests for non-arbitrariness have to be passed by the 2019 Ordinance.'

New Delhi: In a petition filed by 11 homebuyers of 11 different projects, the Supreme Court intervened by issuing notice to the government against the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 which amends Section 7 of the Insolvency and Bankruptcy Code, 2016 for homebuyers whereby homebuyers and other class of creditors can initiate an action against a defaulter or corporate debtor and approach the National Company Law Tribunal (NCLT) for liquidation process only if they are either 100 in number or 10% of the total allottees under that project (whichever is lesser). These amendments were to apply retrospectively. The matter was hea...