2023 (5) TMI 928 - AT - Insolvency and Bankruptcy

Appeal dismissed: Intervention application rejected in Section 7 IBC proceeding upheld.

The appeal against the rejection of an intervention application in a proceeding under Section 7 IBC was dismissed. The Adjudicating Authority's decision ... Maintainability of intervention application - It is submitted that the Application is still pending for consideration and has not yet been admitted - rejection of impugned Application on the ground that at the pre-admission stage there is no occasion to permit the Applicant to intervene in the matter - HELD THAT:- 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 - there are no 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. Appeal dismissed. Appeal against order dated 26.08.2022 challenging rejection of I.A. Nos. 3795/ND/2022 and 3796/ND/2022 (applications to intervene) in a Section 7 IBC proceeding. The applicants are home-buyers who sought to intervene in a Section 7 petition initiated by another home-buyer; that petition remains pending and 'has not yet been admitted.' The Adjudicating Authority rejected intervention on the ground that at the pre-admission stage 'there is no occasion to permit the Applicant to intervene in the matter.' No error was found in declining intervention prior to admission of the Section 7 application. Noting prior settlements between the Corporate Debtor and other home-buyers, the Tribunal nevertheless held that the appellants 'shall be open to the Appellant to file appropriate fresh application in the event application is admitted under Section 7 IBC.' Subject to that qualification, the appeal is dismissed.