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2021 (9) TMI 491 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Financial Creditors - parties to development agreement - existence of debt and dispute or not - HELD THAT:- One thing is clear that amount of ₹ 5,00,000/- had been paid by the Financial Creditor to the Corporate Debtor but the Financial Creditor has not produced anything on record that the amount had been paid to the Corporate Debtor as booking amount for a particular flat. The Development Agreement relied upon by the Financial Creditor is between the Landowners and the Corporate Debtor, and not between the Financial Creditor and the Corporate Debtor. Once it is proved that the amount advanced did not relate to booking of any flat, particularly in the absence of any agreement between the Financial Creditor and the Corporate Debtor to that effect, the Financial Creditor cannot make out a case for initiating CIRP against the Corporate Debtor. The amount given by the Financial Creditor to the Corporate Debtor may have been given for any purpose. No terms of any agreement, specific period, or continued investment, have been proved by any documents placed on record. Even the date of default, if at all, is not clear nor has any letter recalling the alleged loan/advance has been served on the Corporate Debtor or placed on record. The Financial Creditor may however, be free to seek its remedies elsewhere for recovery of the amount of ₹ 5,00,000/- with or without interest as the case may be, as per the documents in its possession. But certainly, it is not a case for initiation of CIRP under section 7 of the IBC, 2016. This is not a fit case for admission - petition dismissed.
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