Investors Can't Be Considered As Allottees In Absence Of “Agreement To Sell” Or “Allotment Letter”: NCLT Delhi

The Delhi bench of the National Company Law Tribunal (NCLT) has ruled that mere investment receipts issued by a real estate developer do not automatically qualify investors as "allottees" under the Insolvency and Bankruptcy Code (IBC) in the absence of proper and legally binding sale agreements for specific properties. This order aims to prevent speculative and unsubstantiated claims in real estate insolvency proceedings, ensuring that only genuine homebuyers with documented agreements are recognized as allottees with specific rights under the IBC. This distinction is crucial for protecting the interests of legitimate homebuyers in the resolution process.