Supreme Court is hearing an appeal by NOIDA against NCLAT order where NOIDA's contentions were rejected claiming to be Financial Creditor basis the lease deed entered into with the Developer Company namely Shubhkamna Buildtech Private Limited
(Corporate Debtor)
Solicitor General Tushar Mehta: Merely because it is a statutory corp and functioning through officers and officers dont have a leeway, it will not be a correct interpretation.
ASG Madhavi Divan: Suppose the court concludes that it is an ordinary lease and not a financial lease, it would not preclude me from carrying proceedings herein. we are not talking about lease but the financial arrangement which lies herein
ASG Divan: this case was about incentive where it was about please come and invest. There is a financial debt and there is time value and money. time value lies in the staggered payment schedule herein
ASG Divan: it is indeed a financial lease
Justice Joseph: which country did you borrow from ? From England?
ASG: Yes
SC: Then there will be some legislative mechanism.
The NCLAT had held that a lease of land between a developing authority and a builder cannot be considered or treated as a financial lease merely to enable the said authority to be a part of the CoC as a FC
Justice KM Joseph: if you are a lessee all the more you will not get a right is it?
SC: Heard. Judgment reserved. Written submission to be filed not exceeding three pages.
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