A recent judgment against AMR Infrastructure has upheld that buyers are entitled to be recognised as financial creditors, wherein the developer had promised ‘assured returns’ as a part of the deal.| Office space for rent
However, the matter has raised questions about initiating bankruptcy proceedings, given that financial credito ..
Most experts are of the opinion that it will be difficult to hold a committee of creditors as required under the bankruptcy law if even 1% of these buyers attend any meeting. Souvik Ganguly of Acuity Law said, “If such creditors can collectively account for even 25% of claims,Rent commercial property they could potentially interfere with the functioning of the committee of creditors. That has implications for the extent of influence lenders can exercise.”
An email sent to AMR Infrastructure did not elicit a response till press time. The judgement in case of AMR was passed by the National Company Law Appellate Tribunal (NCLAT), which set aside previous verdicts of the National Company Law Tribunal (NCLT), Delhi and upheld considering realty buyers as financial creditors.