https://www.taxtmi.com/caselaws?id=751297 An allottee in a real estate project remains a financial creditor under the Insolvency and Bankruptcy Code because the amount raised from such allottee is deemed to have the commercial effect of a borrowing. A RERA refund order does not extinguish the underlying allottee status or alter the character of the claim into something distinct; the distinction between allottees with a refund decree and other allottees is artificial. The Code's non obstante clause gives it overriding effect, so such applicants continue to fall within the class governed by the second proviso to Section 7(1), and non-compliance with that threshold justified rejection of the Section 7 application. en-us Tue, 09 Apr 2024 00:00:00 +0530 Fri, 12 Apr 2024 18:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=751297 An allottee in a real estate project remains a financial creditor under the Insolvency and Bankruptcy Code because the amount raised from such allottee is deemed to have the commercial effect of a borrowing. A RERA refund order does not extinguish the underlying allottee status or alter the character of the claim into something distinct; the distinction between allottees with a refund decree and other allottees is artificial. The Code's non obstante clause gives it overriding effect, so such applicants continue to fall within the class governed by the second proviso to Section 7(1), and non-compliance with that threshold justified rejection of the Section 7 application. Case-Laws Insolvency and Bankruptcy Tue, 09 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=751297