Pre-admission intervention in section 7 insolvency proceedings is not maintainable; relief may be sought after admission.

An intervention application by home buyers in a section 7 Insolvency and Bankruptcy Code proceeding was considered at the pre-admission stage, where the Tribunal found no basis to permit third-party intervention before admission of the insolvency petition. The refusal to entertain the intervention request was therefore upheld, with liberty left open to seek appropriate relief if the section 7 application is later admitted. The note reflects the principle that intervention is not maintainable before admission in such proceedings.

---

---

Issues: Whether an application for intervention by home buyers is maintainable at the pre-admission stage of a proceeding under section 7 of the Insolvency and Bankruptcy Code, 2016.

Analysis: The appeal arose from rejection of the intervention application on the ground that, before admission of the section 7 application, there was no occasion to permit third-party intervention. The Tribunal noted that the section 7 proceeding had not yet been admitted and that the intervention plea was filed at the pre-admission stage. In these circumstances, no error was found in the refusal to entertain the intervention request, while leaving it open to the appellant to seek appropriate relief if the section 7 application is later admitted.

Conclusion: An intervention application is not maintainable at the pre-admission stage of a section 7 proceeding, and the rejection of such application was upheld.

---