Allottee cannot be considered as Financial Creditor on Cancellation of Unit by Own Request: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has ruled that an allottee cannot be considered a financial creditor upon cancellation of a unit by their own request. This decision clarifies the legal status of allottees in insolvency proceedings. The ruling distinguishes between financial creditors and allottees who voluntarily cancel their units. This ruling clarifies IBC.