Section 7 insolvency claim fails where no financial debt is shown against the respondent and an attachment order is not a money judgment.

A Section 7 application under the Insolvency and Bankruptcy Code was held not maintainable where the agreement was executed with a different entity, not the respondent, and no material showed that money was paid to the respondent or that any financial debt existed against it. An attachment order passed by the District Magistrate under Section 4 of the Haryana Protection of Interest of Depositors in Financial Establishment Act, 2013, was not a recovery certificate or money judgment capable of founding insolvency proceedings. The tribunal treated the earlier identical ruling as directly applicable and found that the applicants had not established financial creditor status or a prima facie basis for corporate insolvency resolution against the respondent.

---

---

Issues: Whether the applicants had established a maintainable claim under Section 7 of the Insolvency and Bankruptcy Code, 2016 against the respondent on the basis of the District Magistrate's order under Section 4 of the Haryana Protection of Interest of Depositors in Financial Establishment Act, 2013.

Analysis: The application was founded on an agreement executed with a different entity, namely the developer, and not with the respondent. No material was produced to show that the money in question was paid to the respondent or that any financial debt existed against it. The order relied upon from the District Magistrate was only an attachment order under Section 4 of the Haryana Protection of Interest of Depositors in Financial Establishment Act, 2013, and did not constitute a recovery certificate or a judgment for money capable of founding a Section 7 proceeding. The same legal position had already been applied in the earlier identical matter, and that ruling was treated as squarely applicable.

Conclusion: The applicants failed to establish that they were financial creditors of the respondent or that a prima facie case existed for initiation of corporate insolvency resolution process. The application under Section 7 was not maintainable.

---