2023 (5) TMI 928 - AT - Insolvency and Bankruptcy

Maintainability of intervention application - It is submitted that the Application is still pending for consideration and has not yet been admitted - rejection of impugned Application on the ground that at the pre-admission stage there is no occasion to permit the Applicant to intervene in the matter - HELD THAT - In the present case the Application under Section 7 has not yet been admitted. Adjudicating Authority did not commit any error in rejecting the Intervention Application at pre-admission stage filed by the Appellant - there are no error in the Impugned Order rejecting the application for intervention. However it shall be open to the Appellant to file appropriate fresh application in the event application is admitted under Section 7 IBC. Appeal dismissed.

Summary

Issues Involved:
The appeal against the rejection of intervention application in a proceeding under Section 7 IBC by the Adjudicating Authority.

Issue 1: Rejection of Intervention Application
The Appellant, claiming to be home buyers, filed an Application for intervention in a proceeding under Section 7 IBC initiated by another home buyer. The Adjudicating Authority rejected the Application on the ground that at the pre-admission stage, there is no occasion to permit the Applicant to intervene in the matter.

Details: The Corporate Debtor had settled with home buyers in a previous instance, but in the present case, the Application under Section 7 had not yet been admitted. The Adjudicating Authority did not commit any error in rejecting the Intervention Application at the pre-admission stage. The Impugned Order was found to be without error in rejecting the application for intervention. However, the Appellant was given the option to file a fresh application if the initial application is admitted under Section 7 IBC.

Decision: The appeal was dismissed, subject to the above considerations.