TMI Blog2021 (10) TMI 709X X X X Extracts X X X X X X X X Extracts X X X X ..... ount is raised under the real estate project for the allotment of two units, therefore, as per Section 5(8)(f) Explanation (i), the amount having the commercial effect of a borrowing; and the Petition an allottee under the real estate project - the applicant is well advised to file an application in terms of the amendment made in Section 7 of IBC. Since, the application is not in terms of the amen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in between the parties. 4. She further submits that even then the petitioner may be treated as Financial Creditor and not an allottee. 5. Considering the submissions, at this juncture, we would like to refer to Section 5(8) of the IBC which defines the financial debt and the same is quoted below:- 5(8) financial debt means a debt alongwith interest, if any, which is disbursed against t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt, having the commercial effect of a borrowing; 2[Explanation. -For the purposes of this sub-clause,- (i) any amount raised from an allottee under a real estate project shall be deemed to be an amount having the commercial effect of a borrowing; and (ii) the expressions, allottee and real estate project shall have the meanings respectively assigned to them in clauses (d) and (z ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct for the allotment of two units, therefore, as per Section 5(8)(f) Explanation (i), we are of the considered view that the amount having the commercial effect of a borrowing; and the Petition an allottee under the real estate project. 7. Therefore, the applicant is well advised to file an application in terms of the amendment made in Section 7 of IBC. Since, the application is not in terms of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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