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2018 (6) TMI 852 - AT - Insolvency and BankruptcyCorporate insolvency process - whether 1st Respondent does not come within the meaning of ‘Financial Creditor’ in terms of Section 5(7) and Section 5(8) of the I & B Code? - agreement for sale of flat reached between ‘Corporate Debtor’ and the 1st Respondent - Held that:- 1st Respondent - flat buyer accepts that the total amount has been paid back by the Appellant. The terms of settlement have been brought on record. Learned Counsel for the 1st Respondent also failed to show that the 1st Respondent had informed one month in advance from the date of the agreement, to the ‘Corporate Debtor’ that he intended to continue with the booking/holding of the flat in question. In view of the fact that the 1st Respondent has failed to prove that he comes within the meaning of ‘Financial Creditor’ of the ‘Corporate Debtor’, the order passed by the Adjudicating Authority cannot be upheld. For the reasons aforesaid, we set aside the impugned order dated 09.02.2018 passed by the Adjudicating Authority in (IB) 19(ND) 2018. The 1st Respondent having paid the total dues, we direct the Adjudicating Authority to close the proceeding.
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