Speculative Investor Is Not A Financial Creditor: NCLT Chandigarh [Read More]

The National Company Law Tribunal, Chandigarh Bench, comprising Shri Harnam Singh Thakur (Judicial Member) and Shri L.N Gupta (Technical Member), dismissed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, filed by Nikhil Khanna and others against Spaze Towers Private Limited. \r

The applicants, who had purchased commercial office spaces with assured investment returns, claimed financial creditor status. However, the tribunal ruled that they were speculative investors seeking returns rather than genuine allottees using the office spaces. \r

Citing precedent and the nature of the investment returns, the tribunal concluded that the applicants did not qualify as financial creditors under the IBC. Consequently, their application for initiating Corporate Insolvency Resolution Process (CIRP) was rejected.