Case Law Details
Nikhil Khanna Vs Spaze Towers Private Limited (NCLT Chandigarh)
Speculative investor cannot claim status and benefits of Financial Creditor: NCLT rejects CIRP Application
Nikhil Khanna and 87 other applicants filed a Section 7 application under the Insolvency and Bankruptcy Code, 2016 against Spaze Towers Private Limited (the Respondent), seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The applicants had collectively booked 80 office spaces in the “Spaze Corporate Park” project in Gurgaon, Haryana. They claimed default by the Respondent in payment of assured investment returns as per Memorandums of Understanding (MoUs) executed for these bookings.
Legal Proceedings: The Respondent argued that the applicants were speculative investors, not genuine allottees entitled to financial creditor status under the IBC. They contended that since obtaining the Occupation and Completion Certificates, the project was complete, and the lease agreements with a third party discharged their obligations to pay assured returns. They also cited the applicability of Section 10A of the IBC, barring applications for defaults occurring during a specified period.
Key Points of Contention:
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