NISHANT
Homebuyer's application for initiation of Corporate Insolvency Resolution Process in respect of Umang Realtech Private Ltd. admitted
NISHANT MEHROTRA 31 Aug 2019

Homebuyer's application for initiation of Corporate Insolvency Resolution Process in respect of  Umang Realtech Private Ltd. admitted

NCLT Principal Bench has admitted an application moved by Rachna Singh and Ajay Singh under Section 7 of the Insolvency and Bankruptcy Code in respect of real estate company Umang Realtech Private Limited.


The homebuyer's application for initiation of Corporate Insolvency Resolution Process was for defaulting in repayment of debt pursuant to its delay in handing over possession of apartments in its project in Gurgaon.


Held:

It is true that proceedings under the Code are not in the nature of recovery. In the present application, the financial creditor is seeking initiation of corporate insolvency resolution process by making prayer that all financial creditors, operational creditors and others may raise their claims and if corporate financial restructuring is possible then within the stipulated period it may be explored failing which the due process of law is to take its course.


Therefore, by initiation of corporate insolvency resolution process, the financial creditor is only highlighting the default committed by the corporate debtor with respect to its inability to pay. The same is required to be remedied. Therefore, it cannot be concluded that the filing of the present petition would amount to recovery of the debts by the financial creditor.


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