Allottee Cannot Be Considered Financial Creditor When Allotted Unit Is Cancelled At Their Request: NCLAT

NCLAT has ruled that an allottee cannot be considered as a financial creditor when the allotted unit is cancelled at their request. This decision clarifies the definition of financial creditors under the IBC. The tribunal's ruling emphasizes the importance of considering the nature of the transaction. This judgment provides clarity on IBC procedures. The ruling underscores the need for legal compliance.