https://www.taxtmi.com/caselaws?id=451147 An auction purchaser under the SARFAESI framework that takes over a real estate project and acknowledges existing allotments may be treated as owing financial debt to homebuyers for a Section 7 insolvency claim, because the debt attaches to the project and the purchaser assumes the related obligations. The absence of direct disbursal to the purchaser does not defeat financial creditor status where the sale documents require recognition of the allotments and receipt of only the unpaid balance. Interim restraint orders in related proceedings do not excuse default where they were temporary, later ceased to operate, and no bona fide steps were taken to complete construction or obtain approvals. The Section 7 admission was therefore upheld. en-us Thu, 14 Mar 2024 00:00:00 +0530 Wed, 20 Mar 2024 14:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=451147 An auction purchaser under the SARFAESI framework that takes over a real estate project and acknowledges existing allotments may be treated as owing financial debt to homebuyers for a Section 7 insolvency claim, because the debt attaches to the project and the purchaser assumes the related obligations. The absence of direct disbursal to the purchaser does not defeat financial creditor status where the sale documents require recognition of the allotments and receipt of only the unpaid balance. Interim restraint orders in related proceedings do not excuse default where they were temporary, later ceased to operate, and no bona fide steps were taken to complete construction or obtain approvals. The Section 7 admission was therefore upheld. Case-Laws Insolvency and Bankruptcy Thu, 14 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=451147