9911796707
TMI Blog2020 (5) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... Estate. To facilitate interested buyers in purchasing their flats, financial assistance was extended to various allottees by the Financial Creditor. It is submitted that loans of varying amounts were disbursed to borrowers. To secure the due repayment, a lien over the flat was created by way if a Tripartite agreement involving the Builder. The amounts were disbursed to the applicants for the specific purpose of payment of installments to be made to the Respondent upon their individual loans being sanctioned. Accounts were opened with the financial creditor and upon standing instructions, amounts were released to the Respondent Developer as and when the demand was raised. 3. A tripartite agreement was executed between the parties namely, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 5(8) of the Code. There has been no default on the part of the Corporate Debtor and therefore the present petition under section 7 of the Code is misplaced and is liable to be dismissed. It is their case that the financial assistance was granted to each individual borrower to assist them financially in booking their unit with the Corporate Debtor. The default towards repayment in the EMIs by the borrowers cannot be placed at the doorstep of the Corporate Debtor. 6. We find merit in the arguments advanced by the ld. counsel for the Corporate Debtor. It is common aknowledge that housing finance companies offer loans to people seeking financial assistance for the purpose of booking units in a particular project, and have a tie up with the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards payment of interest to the financial creditor. The facts of the present case are subsequently different. The loans were applied for by individual borrowers for varying amounts, and a statement of every account has been maintained separately. The amounts were disbursed into individual accounts and the installment due would be transferred automatically to the Developer under standing Instructions As per clause 2.9 of their agreement, the liability to pay EMIs was that of the borrower. The default giving rise to the financial debt is due from the loanee and not from the Developer. 8. The transaction relied upon does not make the Respondent company liable to be proceeded u/s 7 of the Code. Filing of such a petition is an abuse of the proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
