The status of Financial Creditor cannot be accorded to a person who, in the garb of a lender comes in a Real Estate Project as a Speculative Investor and for mere recovery of monies files exorbitant claims – Mr. Rohit Prasad Vs. M/s S and N Lifestyle Infraventures Pvt. Ltd. – NCLT New Delhi Bench Court-V
The Adjudicating Authority held that while determining both Issue ii and Issue iii together, on bare perusal of Section 5 (7) of Insolvency and Bankruptcy code “financial creditor” means any person to whom a financial debt is owed and includes a person to whom such debt has been legally assigned or transferred; Section 5 (8) “financial debt” means a debt along with interest, if any, which is disbursed against the consideration for the time value of money. The status of “Financial Creditor” cannot be accorded to a person who, in the garb of a lender comes in the project as a speculative investor and for mere recovery of monies files exorbitant claims. Therefore, the benefit of section 5(8)(f) of IBC will not enure in his favour and the amount claimed in Part IV of the application doesn’t amount to become Financial Debt as per code. Therefore, the present application filed under section 7 of the IB Code 2016 against the corporate debtor is not maintainable.