https://www.taxtmi.com/caselaws?id=410143 Amounts raised from purchasers in a real estate project, including under an agreement to sell, may constitute financial debt where payment records and the corporate debtor's accounts show the transaction as application money for space booking and the arrangement has the commercial effect of borrowing. The unregistered or disputed execution of the agreement did not, on these facts, alter that character, so the claimants were treated as financial creditors as allottees. The limitation objection to the claim failed, and a direction to refund money outside the insolvency and liquidation framework was unsustainable. Other claimants, whose arrangements were in the nature of lease, licence, premium, or security deposit, were not financial creditors, though their claims could be lodged before the liquidator. The challenge to liquidation failed. en-us Fri, 23 Jul 2021 00:00:00 +0530 Mon, 26 Jul 2021 09:14:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=410143 Amounts raised from purchasers in a real estate project, including under an agreement to sell, may constitute financial debt where payment records and the corporate debtor's accounts show the transaction as application money for space booking and the arrangement has the commercial effect of borrowing. The unregistered or disputed execution of the agreement did not, on these facts, alter that character, so the claimants were treated as financial creditors as allottees. The limitation objection to the claim failed, and a direction to refund money outside the insolvency and liquidation framework was unsustainable. Other claimants, whose arrangements were in the nature of lease, licence, premium, or security deposit, were not financial creditors, though their claims could be lodged before the liquidator. The challenge to liquidation failed. Case-Laws Insolvency and Bankruptcy Fri, 23 Jul 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=410143