Claims For Interest Based On RERA Order Do Not Translate Into Financial Debt Under IBC: NCLT Delhi

NCLT (National Company Law Tribunal), Delhi, ruled that claims for interest based on a RERA (Real Estate Regulatory Authority) order do not automatically qualify as "financial debt" under the Insolvency and Bankruptcy Code (IBC). The tribunal reasoned that while a RERA order creates a liability, the nature of this liability, particularly interest awarded as compensation, does not inherently fall within the definition of financial debt as defined under the IBC, which typically involves a time value of money. This distinction is crucial for determining the rights and priorities of claimants in insolvency proceedings.