Home Case Index All Cases Insolvency and Bankruptcy Insolvency and Bankruptcy + AT Insolvency and Bankruptcy - 2019 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 1616 - AT - Insolvency and BankruptcyAdmissibility of appeal - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Real estate project - Financial Creditors or not - existence of debt and dispute or not - HELD THAT:- It is stated that the transaction was for a unit in building which was already in existence and it was in the nature of party trying to enter into an Agreement of sale which did not take place and thus, the Counsel states that it cannot be said to be financial debt which was recoverable. It is argued that the amendment to Section 5 Sub-Section (8) came in June, 2018 and thereafter, the Appellant sent Notice (page - 46) in October, 2018 to take benefit of the provisions of IBC. The expression 'allottee' and the expression 'real estate project' are to be understood on the basis of Clause - d and Clause - z(n) of Section 2 of Real Estate (Regulation and Development) Act, 2016 which expressions have been defined in the said Act - Even if there would have been a regular agreement of sale executed between the parties for a unit in existing building, if there was a default, it would at the most create a "debt" to be recovered but would not create "financial debt". The explanation added by the legislature in Section 5(8) has been added for specific purpose to protect allottees in development projects Company Appeal (AT) (Ins) No.1047 of 2019 which are going into problems. It is not for enforcing specific performance of Contract of existing property. There are no reason to take a different view from that of Adjudicating Authority where it found that the financial debt was not established. Appeal declined.
|