Amit Rajpal and Anr. Vs. Ahuja Properties & Realtors Pvt. Ltd. – NCLAT New Delhi

The proceedings under Section 7 have been initiated for recovery of an amount of Rs.1,09,22,500/- which according to the Appellants has been paid by him to the Corporate Debtor as Corpus Fund. The insolvency resolution process under IBC are not proceedings for recovery of any amount. Especially, in the facts of the present case when the application under Section 7 has been filed for recovery of amount towards the Corpus Fund which is claimed to have been paid by the Appellants to the Corporate Debtor which fund has not been transferred to the Housing Society of the flat buyers, we are of the view that insolvency proceedings cannot be initiated at the instance of the Appellants. We with these reasons are not inclined to entertain this Appeal.

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