2025 Supreme(Online)(NCLT) 2792

NATIONAL COMPANY LAW TRIBUNAL
Harnam Singh Thakur, Shishir Agarwal, JJ
Kone Elevator India Pvt. Ltd. – Appellant
Versus
Chandigarh Overseas Pvt. Ltd. – Respondent
CP(IB) No. 248/Chd/Chd/2019 | IA No. 2105/2023

Speculative investors can still be considered financial creditors under the IBC, as presence in the Committee of Creditors does not depend solely on the nature of claims reflected in balance sheets.

Headnote:(A) Insolvency and Bankruptcy Code, 2016 - Section 60(5), Section 21 - Dispute regarding inclusion of creditors in the Committee of Creditors - Application made by the Suspended Director challenging the status of certain creditors as financial creditors and seeking exclusion based on their classification as speculative investors - Court held that mere speculative nature of investment does not preclude creditors from maintaining claims under IBC. (Paras 25-30, 36)

(B) Claims - Admission of claims - Established that claims may exist outside the audited balance sheet and that creditors can prove their existence through various documents - Balance sheet alone is not definitive proof for rejection. (Paras 26-27)

(C) Time limitation - Court clarified that claims are not automatically barred by limitation due to company’s struck off status under Companies Act, as they may still pursue legal remedies. (Paras 35)

Facts of the case:
Application filed challenging the inclusion of certain respondents in CoC by claiming they are speculative investors, not homebuyers, and presenting various grounds for exclusion, including alleged inflated claims based on unsubstantiated documents.

Findings of Court:
Court emphasized that speculative investors can still be treated as financial creditors, and highlighted that balance sheets are not the only criteria for claim approval.

Issues: Main issues revolved around the classification of creditors as speculative investors and whether this impacted their claim status.

Ratio Decidendi: The court affirmed that the definition of financial creditors under IBC encompasses those who have paid for properties, irrespective of their status as speculative investors.

Result: Application dismissed.

Table of Content
1. application seeking exclusion of speculative investors from committee of creditors. (Para 1 , 4 , 5)
2. court clarifies claims may still be valid despite corporate status being struck off. (Para 10 , 21 , 35)
3. court emphasizes that speculative status does not negate financial creditor status. (Para 12 , 24 , 26 , 28)
4. result of the application concluded; ia dismissed. (Para 36)

ORDER

The present Application has been filed by Mr. Tejinder Pal Setia, Suspended Director of Chandigarh Overseas Private Limited (“Corporate Debtor” or “CD”) under Section 60 (5) read with Section 21 of Insolvency and Bankruptcy Code (“IBC”) seeking to exclude Respondent No. 2 and 3 from the Committee of Creditors (“CoC”) on the ground that they are neither Financial Creditors nor Class of Creditors- Homebuyers/Allottees, as they are business partners/service providers and cannot be treated as homebuyers and are speculative investors and with a prayer to reconstitute the CoC and declare all the actions and decisions including the resolutions passed in 1^st CoC meeting dated 03.08.2023 as illegal. A further prayer has been made that affairs of the Respondent Nos. 2 and 3 be inquired/investigated by Proforma Respondents 4- 7, i.e. jurisdictional Department of Income Tax and Registrar of Companies.

2) The Respondent No. 1 had earlier filed Reply vide Diary No. 2967/1 dated 26.9.2023 and was later permitted to file an Updated Reply vide order dated 4.1.2024, in compliance with which, Updated Reply was filed vide Diary No. 2967/11 dated 15.1.2024. Replies have also been filed by Respondent Nos. 2 & 3 vide Diary No. 2967/2 dated 3.10.23 and Diary No.2967/3 dated 4.10.23 respectively. The Applicant has filed Rejoinder to Replies vide Diary No. 2967/4 dated 04.10.2023, Diary Nos. 2967/5 and Diary No. 2967/6 dated 10.10.2023. Respondent Nos. 2 and 3 have filed further Replies vide Diary Nos. 2967/7 and 2967/8 dated 16.10.2023. The Respondent Nos. 4-7 have not entered appearance. The parties have also filed their respective Short Notes.

3) The Applicant had also filed IA No. 2209/2023 to place on record additional documents in the present IA, which was allowed subject to just exceptions vide order dated 09.05.2024.

4) BRIEF FACTS: The uncontroverted chronological facts in brief are as under:

Dates	Events
27.02.2023	Order of admission by this Hon'ble Tribunal
01.03.2023	Public Announcement in Financial Express (English), Amar Ujala (Hindi), Punjabi Tribunal (Punjabi)
02.03.2023	The order of admission dated 27.02.2023 was stayed by the Hon'ble NCLAT

04.07.2023	The Hon'ble NCLAT dismissed the aforesaid appeal and vacated the stay
07.07.2023	Public notice published in three newspapers namely Financial Express (English), Amar Ujala (Hindi), Punjabi Tribune (Punjabi)
14.07.2023	Last date of Submission of claim
20.07.2023	NCLT directed IRP not to constitute the CoC till 26.07.2023
26.07.2023	This Hon'ble Tribunal was pleased to exclude the period of 120 days i.e. from 02.03.2023 to 04.07.2023 in IA 1564/23
03.08.2023	First meeting of CoC was held
04.08.2023	Hon'ble Supreme Court passed an order of status quo
11.08.2023	Hon'ble NCLAT granted stay till the pronouncement
23.08.2023	Hon'ble NCLAT was pleased to dismiss the Appeal and vacate the stay
06.09.2023	Appeal by the Erstwhile promoter was dismissed by the Hon'ble Apex Court
17.09.2023	Publication of Form-G
02.10.2023	Last date for receipt of expression of interest
12.10.2023	Date of issue of provisional list of prospective resolution Applicants
17.10.2023	Last date for submission of objections to provisional list
17.10.2023	Last date for issue of request for Resolution Plans under Regulations 36B (after exclusion)
18.10.2023	Expiry of 90 days from the date of Commencement of CIRP (After Exclusion)
17.11.2023	Last Date for submission of Resolution Plan
22.11.2023	4th meeting of the CoC
17.12.2023	5th meeting of the CoC
20.12.2023	Revised last date for submission of Resolution Plan

SUBMISSIONS OF THE APPLICANT

5) The Respondent No. 2 and 3 are not

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