Advance paid by real-estate developer to property owner is operational debt under IBC: NCLT

The parties had executed a Term Sheet in August 2018 after the Corporate Debtor approached the Petitioner for the redevelopment of his property.
NCLT, Mumbai
NCLT, Mumbai

The National Company Law Tribunal (NCLT), Mumbai has ruled that the advance paid by a real-estate developer to a property owner for a re-development project qualifies as operational debt under the Insolvency & Bankruptcy Code, 2016 (Sunteck Realty Limited vs Goodwill Theatres Private Limited).

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