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2020 (2) TMI 193 - AT - Insolvency and BankruptcyMaintainability of application - non transfer of ‘Interest Bearing Maintenance Security Deposit’ - Section 7 of the Insolvency and Bankruptcy Code, 2016 - ‘Corporate Debtor’ entitlement to retain the one-time maintenance and liability towards electricity etc. and individual liability against the resident - HELD THAT:- The Adjudicating Authority is only required to see whether the application under Section 7 has been filed by 100 allottees, who are members of RWA or a 10% of the allottees who are members of the allottees to maintain it. The Adjudicating Authority is required to take into consideration only the Form-1 and the enclosure therein but find out the default, if any and to proceed in accordance with law. Before the admission of the application under Section 7, the Adjudicating Authority has no jurisdiction to direct the ‘Corporate Debtor’ to deposit any amount to certain corpus or with regard to maintenance which may not be a subject matter of application under Section 7. Case remanded to the Adjudicating Authority to decide the matter in accordance with law taking into consideration the fact whether the claim, as made, comes within the meaning of ‘financial debt’ as defined under Section 5(8) and on the basis of Form-1 as filed by the Applicant and not on the basis of any pleading by one or other parties - appeal allowed.
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