If an allottee does not pay the full amount, cannot allege default on the part of the Corporate Debtor, If the Corporate Debtor does not complete the work within time and the allottee is agreed to pay the total amount or has paid the total amount then only the allotte’ can allege default – Anil Kumar Tulsiani Vs. Rakesh Kumar Gupta & Anr. – NCLAT New Delhi
Normally, an ‘allottee’ of Real Estate comes within the meaning of ‘Financial Creditor’ but if such an ‘allottee’ does not pay the full amount, cannot allege default on the part of the ‘Corporate Debtor’. If the ‘Corporate Debtor’ does not complete the work within time and the ‘allottee’ is agreed to pay the total amount or has paid the total amount then only the ‘allottee’ can allege default. Similarly, if ‘allottee’ finds that completion has not been made by the ‘Corporate Debtor’ within time and if request to return the amount disbursed to the ‘Corporate Debtor’, on failure to refund the amount the allottee can claim the default on the part of the ‘Corporate Debtor’.
