Surinder Pal Singh & Ors vs Spaze Towers Private Limited
- CitationCompany Appeal (AT)(Insolvency) No. 354 of 2023
Ratio decidendi
The rule this decision rests on
At the pre-admission stage of a proceeding under Section 7 of the Insolvency and Bankruptcy Code, 2016, an application for intervention by a person who is not a party to that proceeding may properly be rejected by the Adjudicating Authority, and such a rejection does not call for interference in appeal; the applicant is left free to file a fresh application once the Section 7 application has been admitted.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Surinder Pal Singh & Ors. ...Appellant
Versus Spaze Towers Pvt. Ltd. ...Respondent
Present: For Appellant : No appearance marked.
For Respondent : Mr. Sumesh Dhawan, Ms. Vatsala Kak, Mr. Shaurya Shyam and Mr. Rabhav Debla, Advocates
ORDER
27.03.2023: This is an appeal against an order dated 26.08.2022 passed
by the Adjudicating Authority (NCLT, Court -IV, New Delhi) by which I.A. Nos.
3795/ND/2022 and 3796/ND/2022 have been rejected. The Appellant claimed
to be home buyers, who had filed an Application for intervention in a
proceeding under Section7 IBC, which was initiated by another home buyer. It
is submitted that the Application is still pending for consideration and has not
yet been admitted.
Adjudicating Authority, by Impugned Order has 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.
Learned Counsel for the Appellant submits that on an earlier occasion
the Corporate Debtor has settled with home buyers, who filed application to
initiate proceeding.
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. We do
not find any 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.
Subject to the above, this appeal is dismissed.
[Justice Ashok Bhushan] Chairperson
[Mr. Barun Mitra] Member (Technical) akc/nn
Company Appeal (AT)(Insolvency) No. 354 of 2023 & I.A. No. 1157, 1195 of 2023 Page 2 of 2
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