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2020 (2) TMI 57 - AT - Insolvency and BankruptcyMaintainability of petition - initiation of CIRP - time limitation - fraudulent and malicious initiation of proceedings with an intent for any purpose other than for the resolution of insolvency or liquidation - HELD THAT:- The 1st and 2nd Respondents filed the application under Section 7, fraudulently with malicious intent for the purpose other than for the resolution or liquidation and they knocked at the doors of the Adjudicating Authority for refund of money and not for the Flat/ premises and thereby wanted to jump ship and really get back the amount, by way of coercive measure - Apart from the fact that the ‘Corporate Debtor’ has offered the possession of flat on 15th November, 2016 and obtained completion certificate immediate thereafter. Therefore, delay in granting approval by the Competent Authority cannot be taken into consideration to hold that the ‘Corporate Debtor’ defaulted in delivering the possession. The case of the 1st and 2nd Respondents is covered by Section 65 of the ‘I&B Code’ and are liable for imposition of penalty. However, in the facts and circumstances of the case, we are not imposing such penalty on 1st and 2nd Respondents, who even in presence of this Appellate Tribunal refused to accept the money in terms of the Agreement and also refused to take possession of the flat. The application preferred by 1st and 2nd Respondents under Section 7 of the ‘I&B Code’ is dismissed - The appellant ‘Corporate Debtor’ (company) is released from all the rigours of ‘Moratorium’ and is allowed to function through its Board of Directors from immediate effect.
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