https://www.taxtmi.com/caselaws?id=797353 Homebuyers who invoke arbitration for refund of sale consideration, accept and present refund cheques, and pursue dishonour proceedings abandon their status as continuing allottees for insolvency purposes. Although amounts raised from real-estate allottees ordinarily have the commercial effect of borrowing, financial-creditor status requires a subsisting financial debt and liability owed by the corporate debtor. A refund claim pursued through these steps does not retain the character of a debt owed to a continuing allottee. The principle barring differential treatment of decree-holder allottees does not apply where the claim results from the homebuyer's election to seek refund. Such homebuyers cannot be recognised as financial creditors in that capacity. en-us Wed, 19 Aug 2026 00:00:00 +0530 Fri, 21 Aug 2026 08:28:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797353 Homebuyers who invoke arbitration for refund of sale consideration, accept and present refund cheques, and pursue dishonour proceedings abandon their status as continuing allottees for insolvency purposes. Although amounts raised from real-estate allottees ordinarily have the commercial effect of borrowing, financial-creditor status requires a subsisting financial debt and liability owed by the corporate debtor. A refund claim pursued through these steps does not retain the character of a debt owed to a continuing allottee. The principle barring differential treatment of decree-holder allottees does not apply where the claim results from the homebuyer's election to seek refund. Such homebuyers cannot be recognised as financial creditors in that capacity. Case-Laws IBC Wed, 19 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797353