https://www.taxtmi.com/caselaws?id=393015 Amounts raised from an allottee in a real estate project have the commercial effect of borrowing and may constitute financial debt under the Insolvency and Bankruptcy Code, so the petitioner was treated as a financial creditor. However, the agreement required payment of the balance consideration within one year, and the petitioner failed to pay within that period. On those facts, the respondent's cancellation of the allotment followed the petitioner's non-performance, and no default by the respondent in repayment of financial debt was proved. Because the foundational requirement of financial default was absent, the insolvency petition was not maintainable and no relief could be granted. en-us Fri, 22 Nov 2019 00:00:00 +0530 Wed, 04 Mar 2020 12:35:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=393015 Amounts raised from an allottee in a real estate project have the commercial effect of borrowing and may constitute financial debt under the Insolvency and Bankruptcy Code, so the petitioner was treated as a financial creditor. However, the agreement required payment of the balance consideration within one year, and the petitioner failed to pay within that period. On those facts, the respondent's cancellation of the allotment followed the petitioner's non-performance, and no default by the respondent in repayment of financial debt was proved. Because the foundational requirement of financial default was absent, the insolvency petition was not maintainable and no relief could be granted. Case-Laws Insolvency and Bankruptcy Fri, 22 Nov 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=393015