The classification of financial debt under the IBC does not extend to investors in industrial units deemed as 'Other Creditors', preserving protections for genuine homebuyers.

ORDER

1. The present Interlocutory Application is filed Under Section 60(5) of Insolvency and Bankruptcy Code 2016 by the Applicant for admission of the Claim of Applicant under the category of 'Financial Creditor' (instead of IRP's admission of the Claim of Applicant under the category of 'other creditor') and admission of the Applicant in the Committee of Creditors of the Corporate Debtor.

2. The brief facts are that the Corporate Debtor was engaged in the development of the Renaissance Industrial Smart City Project (“Project”), a project duly approved and registered under RERA. Pursuant to a registered Agreement for Sale dated 31 March 2022 (“Agreement for Sale”) and a Memorandum of Understanding dated 13 April 2022 (“MOU”), both executed between the Corporate Debtor (as Vendor) and the Applicant (as Purchaser), the Applicant purchased a Unit/Gala in the Project. The Applicant paid the entire consideration amount of Rs. 36,28,050/- plus GST of Rs. 4,35,366/-, which payment stands duly acknowledged by the Corporate Debtor. Further the Applicant was also entitled to receive a monthly assured return of Rs. 22,914/-, as fixed monthly compensation under the Guaranteed License Plan stipulated in Clause 6 of the MOU. The Corporate Debtor paid this assured return regularly until March 2023. However, due to the NCLT order dated 31 March 2023, initiating CIRP against the Corporate Debtor, the assured return for March 2023 remained unpaid. Pursuant to the commencement of CIRP and the Public Announcement published on 06 April 2023, the Applicant submitted its claim on 19 May 2023 in Form C, under the category of Financial Creditor, for a total amount of Rs. 40,86,330/-, supported by all requisite documents (“Claim of the Applicant”).

3. To the Applicant’s surprise, on 20 May 2023 the Respondent/IRP arbitrarily admitted the entire claim under the category of Other Creditor, instead of Financial Creditor. When the Applicant sought clarification regarding the change in category, a member of the IRP’s team, one Mr. Rohan, threatened that if the Applicant was dissatisfied with the categorization, the IRP would reject the claim altogether. The Applicant was further informed that the IRP had obtained a legal opinion based on which all property buyers of the Corporate Debtor were being classified as Other Creditors, thereby depriving them of their legitimate rights under the CIRP. Despite repeated requests, the IRP refused to share the alleged opinion or even the updated list of creditors, citing reasons such as the Project not being a “real estate project”, which severely prejudiced the Applicant’s rights.

4. Due to the opaque and arbitrary approach adopted by the IRP, the Applicant obtained an independent Legal Opinion dated 17 June 2023 from Mr. Harshul Shah, Advocate & Solicitor & Insolvency Professional. The Expert unequivocally opined that the Applicant’s claim qualifies as a Financial Debt under Section 5 (8)(f) of the IBC and that the Applicant is a Financial Creditor beyond any doubt. This opinion was duly shared with the IRP. Despite the same, the IRP persisted in treating the Applicant as an “Other Creditor”. After repeated follow-ups, on 27 June 2023—almost a month after the first request—the IRP merely shared a link containing the List of Creditors as of 25 May 2023. The IRP has still not shared an updated list. Several follow-ups requesting appropriate categorization of the Applicant as a Financial Creditor were refused. As a result, the Applicant has been compelled to approach this Tribunal seeking adjudication of