Landowners Are Not Financial Creditors

Ashoka Hi-Tech Builders Pvt. Ltd. Vs Sanjay Kundra & Anr. (NCLAT) The Hon’ble National Company Law Appellate Tribunal in a recent judgment i.e. Ashoka Hi-Tech Builders Pvt. Ltd. v Sanjay Kundra & Anr[i]., held that the Landowners who have not invested any money and are the collaborators in the development agreements cannot be termed as a financial creditor and the said transaction cannot be considered as disbursement against the time value of money. FACTS OF THE CASE :-  1. The Appellant i.e. the Landowner of the development project was admitted as a Financial Creditor in the COC. T...