The National Company Law Tribunal (NCLT), Allahabad Bench of Sri Praveen Gupta (Member, Judicial) and Sri Ashish Verma (Member, Technical) has dismissed a Section 7 insolvency application filed by M/s Nivedan Fin Invest Lease Limited (Financial Creditor) against real estate developer M/s Cosmos Infraestate Private Limited (Corporate Debtor).
Beyond ruling that a short-term business investment with a guaranteed profit does not constitute a “financial debt,” the judgment sets a major legal precedent. It establishes that the proactive intervention of the government-backed SWAMIH Investment Fund serves as a valid institutional shield to protect ongoing construction projects from being stalled by individual recovery-driven litigants. SWAMIH…